40,000+ local pensioners to be hit by £1,000 stealth tax bombshell

10 Mar 2024
An older woman sat by varying devices and stationery trying to figure out finances

New analysis by the Liberal Democrats has revealed that 40,284 pensioners across East and Mid Devon are set to be hit with a £40m stealth tax following the Budget.

Research by the Resolution Foundation think tank has found pensioners are set to lose out from this week’s Budget. This is due to the Conservative government’s decision to freeze income tax thresholds, which will see £8 billion extra tax paid by pensioners across the country by 2027-28 – averaging roughly £1,000 each.

Further analysis by the Liberal Democrats suggests this will impact on the estimated 40,284 pensioners across East and Mid Devon who pay income tax.

Liberal Democrat MP Richard Foord has hit out at the news and said that this showed the Conservative Party has “abandoned” pensioners who are already struggling to pay the bills.

The Liberal Democrats were the first party to commit in full to the triple lock for the upcoming election, which ensures pensions will see an increase by whichever is highest of average earnings growth, CPI inflation, or 2.5%.

Liberal Democrats have also called on the government to double the Winter Fuel Allowance to offer extra help to pensioners, paid for by a proper windfall tax on the oil and gas companies.

Commenting on the findings Tiverton & Honiton MP Richard Foord said:

“Pensioners who have worked hard and paid taxes all their lives are now being punished by this Conservative government. Their cruel decision to freeze the threshold at which people start paying tax leaves many retirees now facing a £1,000 stealth tax bill.

“Many elderly people are already struggling to make ends meet because of sky-high heating bills and the cost of their weekly shop going through the roof. Now, these Conservative tax hikes will only pile on the misery.

“The Liberal Democrats were the party to introduce the triple lock to protect people’s pensions, giving people peace of mind when they retire. But the Conservatives are now hanging our pensioners out to dry with their neglect.

“I’ve been pushing for on the Government to double the Winter Fuel Allowance, tackle the huge backlog of people awaiting operations, and not clobber the most vulnerable with stealth tax rises like this.

“I will be voting against this damaging budget next week, and every Conservative MP who actually cares about supporting our pensioners should do the same.”

Sign up for email updates...

We will keep you up to date by email.

The Liberal Democrats may use the information you provide, including your political opinions, to further our objectives and share it with our elected representatives. Any data we gather will be used in accordance with our privacy policy: libdems.org.uk/privacy. You can exercise your rights and withdraw your consent to future communications by contacting us: data.protection@libdems.org.uk or: DPO, Lib Dems, 1 Vincent Square, SW1P 2PN.