Conservatives promise tax cut for pensioners with ‘triple lock plus’

Published

2 years ago

May 27, 2024

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The Conservatives have promised to cut taxes for pensioners by creating a new “age-related” tax-free allowance – dubbed “triple lock plus”.

Currently, people can receive £12,570 a year of their pensions before they start paying income tax on them – the same figure as the personal allowance for those who work.

But if the party wins the next election, a pensioner’s allowance would rise in line with either average earnings, inflation or by 2.5% – whichever is higher – from next April, echoing the rules on annual state pension increases.

Rishi Sunak said the move “demonstrates we are on the side of pensioners”, and would bring people “peace of mind and security in retirement”.

But Labour’s shadow paymaster general, Jonathan Ashworth, called it “another desperate move from a chaotic Tory party torching any remaining facade of its claims to economic credibility”.

He added: “Why would anyone believe the Tories and Rishi Sunak on tax after they left the country with the highest tax burden in 70 years?”

The Liberal Democrats said the Conservatives had “hammered pensioners with years of unfair tax hikes”, adding: “People won’t be fooled by yet another empty promise from Rishi Sunak after this record of failure.”

The Conservatives first brought in the triple lock when they were in a coalition government with the Liberal Democrats in 2010 to tackle pensioner poverty, saying the annual rise would protect retirees from hikes in living costs, and both Labour and the Lib Dems have promised to keep it in place.

However, while the state pension has continued to rise, the threshold for when both pensioners and those of working age pay income tax has remained frozen since April 2021 when Boris Johnson was in power, meaning some of those on lower incomes have been brought into paying tax.

This new measure would change that for pensioners, with a “guarantee in legislation that the pensioners’ personal allowance will always be higher than the level of the new state pension”.

The Tories said eight million people would save around £100 next year and gain further savings each year as the tax-free allowance grew, with the £2.4bn a year policy paid for through “clamping down” on tax avoidance and evasion.

Making the announcement, Mr Sunak said: “I passionately believe that those who have worked hard all their lives should have peace of mind and security in retirement.

“Thanks to the Conservatives’ triple lock, pensions have risen by £900 this year and now we will cut their taxes by around £100 next year.

“This bold action demonstrates we are on the side of pensioners. The alternative is Labour dragging everyone in receipt of the full state pension into income tax for the first time in history.”

But Labour’s Mr Ashworth hit back, saying: “Not only have they promised to spend tens of billions of pounds since this campaign began, they also have a completely unfunded £46bn policy to scrap national insurance that threatens the very basis of the state pension.

“Labour will protect the triple lock. But Rishi Sunak is planning to reward Britain’s pensioners for their loyalty by stabbing them in the back, just like he did to Boris Johnson and just like he has done to his own MPs.”

Sunak turns gaze to older voters – and leaves questions for Labour

Rob Powell

Political correspondent

@robpowellnews

This is another bold and very political announcement by the Conservatives.

It was only months ago that there had been discussion in Whitehall of whether the triple lock had a future at all, given its extortionate cost.

Now the Tories have gone in the opposite direction, dressing up an income tax cut for pensioners as a beefing up of the expensive ratchet measure.

It will likely prompt questions of generational fairness, given that tax thresholds for those of working age are still due to stay frozen until 2028, while at the same time the triple lock has seen the state pension rise by 8.5% this year and 10.1% in 2023.

Tory sources pointed out that workers had already had a big national insurance cut. And while they said there were currently no plans to unfreeze allowances more broadly, they did re-emphasise an ambition to keep cutting taxes in other areas if feasible.

This move is political because it will inevitably lead to questions about whether Labour will follow suit and mirror this promise.

If they do not, expect accusations of a Labour tax rise for pensioners.

What’s more, with the state pension expected to rise above the current allowance level in a few years, the Tories are also suggesting that a Labour government would drag everyone who claims the state pension into paying income tax for the first time.

The hobbling irony there, of course, is the main reason that would happen is the tax allowance freezes that the Tories brought in.

Coming off the back of the national service policy blitz, this is clearly another attempt to reach out to the Tory base of older voters.

Combine that with Rishi Sunak’s recent visits to traditional Conservative heartland seats and it’s hard not to conclude that this is a campaign currently in a defensive mode.

What’s maybe more interesting though is that, as yet, neither Labour nor the Liberal Democrats have criticised the substance of the policy change directly, no doubt aware of the political risks of being seen to line up against tax cuts for pensioners.

While the Conservatives will focus on pensioners, Labour will use Tuesday to appeal to businesses as shadow chancellor Rachel Reeves makes her first major speech of the general election campaign.

She will promise to run “the most pro-growth Treasury in our country’s history” if her party takes power on 4 July, and promises to be both “pro-worker and pro-business, in the knowledge that each depends upon the success of the other”.

It comes after more than 120 business leaders, including chef Tom Kerridge and Wikileaks founder Jimmy Wales, signed an open letter giving their backing to Labour to “achieve the UK’s full economic potential”.

The Liberal Democrats will turn their attention to crime on the campaign trail, pledging to introduce “burglary response guarantee” so all domestic burglaries are “attended by the police and properly investigated”.

Politics

Soaring demand for mental health, ADHD and autism services to be reviewed after ‘overdiagnosis’ claim

Published

1 hour ago

December 4, 2025

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Soaring demand for mental health, ADHD and autism services to be reviewed after 'overdiagnosis' claim

A review into the rising demand for mental health, ADHD and autism services has been launched by the health secretary.

The independent review will look at rates of diagnosis, and the support offered to people.

Health Secretary Wes Streeting said the issue needs to be looked at through a “strictly clinical lens” after he claimed in March that there had been an “overdiagnosis” of mental health conditions, with “too many people being written off”.

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Mental health conditions are being more commonly reported among the working-age population, figures analysed by the Institute for Fiscal Studies found.

More than half of the increase in 16 to 64-year-olds claiming disability benefits since the pandemic is due to more claims relating to mental health or behavioural conditions.

A total of 1.3 million people claim disability benefits – 44% of all claimants – primarily for mental health or behavioural conditions, the analysis shows.

The review will be led by leading clinical psychologist Professor Peter Fonagy, the national clinical adviser on children and young people’s mental health, who will work with academics, doctors, epidemiological experts, charities and parents.

He will look at what is driving the rising demand for services, and inequalities in accessing support.

The Department of Health said 13 times more people were waiting for an autism assessment in September 2025 compared with April 2019.

There is £688m in extra funding going towards hiring 8,500 more mental health workers so the NHS can expand on talking therapies and increase the number of mental health emergency departments.

Mr Streeting said: “I know from personal experience how devastating it can be for people who face poor mental health, have ADHD or autism, and can’t get a diagnosis or the right support.

“I also know, from speaking to clinicians, how the diagnosis of these conditions is sharply rising.

“We must look at this through a strictly clinical lens to get an evidence-based understanding of what we know, what we don’t know, and what these patterns tell us about our mental health system, autism and ADHD services.

“That’s the only way we can ensure everyone gets timely access to accurate diagnosis and effective support.”

Prof Fonagy said: “This review will only be worthwhile if it is built on solid ground. We will examine the evidence with care to understand, in a grounded way, what is driving rising demand.

“My aim is to test assumptions rigorously, and listen closely to those most affected, so that our recommendations are both honest and genuinely useful.”

The findings will be published next summer.

Politics

Reeves between a rook and a hard place after claims she ‘made up’ chess championship

Published

7 hours ago

December 4, 2025

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Reeves between a rook and a hard place after claims she 'made up' chess championship

As an opening gambit at PMQs, Kemi Badenoch attacked Labour’s knight, the prime minister, over his Treasury queen, Rachel Reeves.

“We now know the black hole was fake, the chancellor’s book was fake, her CV was fake – even her chess claims are made up,” said the Tory leader.

Politics Live: Labour MP who voted against inheritance tax suspended

“She doesn’t belong in the Treasury; she belongs in la-la land.”

Chess claims made up? Where did that attacking move from Kemi come from? Hasn’t the chancellor told us for years that she was a national chess champion in 1993?

Indeed she has. “I am – I was – a geek. I played chess. I was the British girls’ under-14 champion,” she declared proudly in a 2023 interview with The Guardian.

She posted a video showing her playing chess in parliament and before last week’s budget posed for photos with a chessboard.

But her chess champion claim has been disputed by a former junior champion, Alex Edmans, who has accused her of misrepresenting her credentials.

“Her claim was quite specific,” Edmans, now a professor of finance at the London Business School, told Ali Fortescue on the Politics Hub on Sky News.

“She said she was the British girls’ under-14 champion. There was one event that can go on that title, which is the British Championship. And in the year that she claimed, it was Emily Howard who won that title instead.

“She did indeed win a quite different title. There was a British Women’s Chess Association championship, but that’s a more minor title. I’ve won titles like the British squad title, but that’s not the same.

“Just like running a marathon in London is not the same as the London Marathon, there was one event which is very prestigious, which is the British Championship.

“So the dispute is not whether she was a good or bad chess player. That shouldn’t be the criterion for a chancellor. But if you weren’t the British champion, you shouldn’t make that statement.”

Oh dear! So now, along with allegations of plagiarism, a dodgy CV and “lying” – according to Ms Badenoch – about the nation’s finances, the chancellor is between a rook and a hard place.

Or is she? “This story is absolute nonsense,” a Treasury mate told Sky News. No word from the No.10 knight, Sir Keir Starmer, or his Downing Street ranks, however.

Emily Howard, as it happens, is now an accomplished composer, having graduated from the chessboard to the keyboard.

The chancellor’s opponents, meanwhile, claim her budget blunders means the Treasury queen has now become a pawn, there for the taking.

But since Rachel Reeves did indeed win a chess title, just not the one she claimed, her supporters insist she can justifiably claim to have been a champion.

So it’s too soon for Kemi Badenoch and the Conservatives to claim checkmate. The dispute remains a stalemate. For now.

Politics

Rachel Reeves hit by Labour rural rebellion over inheritance tax on farmers

Published

7 hours ago

December 4, 2025

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Rachel Reeves hit by Labour rural rebellion over inheritance tax on farmers

Chancellor Rachel Reeves has suffered another budget blow with a rebellion by rural Labour MPs over inheritance tax on farmers.

Speaking during the final day of the Commons debate on the budget, Labour backbenchers demanded a U-turn on the controversial proposals.

Plans to introduce a 20% tax on farm estates worth more than £1m from April have drawn protesters to London in their tens of thousands, with many fearing huge tax bills that would force small farms to sell up for good.

MPs voted on the so-called “family farms tax” just after 8pm on Tuesday, with dozens of Labour MPs appearing to have abstained, and one backbencher – borders MP Markus Campbell-Savours – voting against, alongside Conservative members.

In the vote, the fifth out of seven at the end of the budget debate, Labour’s vote slumped from 371 in the first vote on tax changes, down by 44 votes to 327.

‘Time to stand up for farmers’

The mini-mutiny followed a plea to Labour MPs from the National Farmers Union to abstain.

“To Labour MPs: We ask you to abstain on Budget Resolution 50,” the NFU urged.

“With your help, we can show the government there is still time to get it right on the family farm tax. A policy with such cruel human costs demands change. Now is the time to stand up for the farmers you represent.”

After the vote, NFU president Tom Bradshaw said: “The MPs who have shown their support are the rural representatives of the Labour Party. They represent the working people of the countryside and have spoken up on behalf of their constituents.

“It is vital that the chancellor and prime minister listen to the clear message they have delivered this evening. The next step in the fight against the family farm tax is removing the impact of this unjust and unfair policy on the most vulnerable members of our community.”

The government comfortably won the vote by 327-182, a majority of 145. But the mini-mutiny served notice to the chancellor and Sir Keir Starmer that newly elected Labour MPs from the shires are prepared to rebel.

Speaking in the debate earlier, Mr Campbell-Savours said: “There remain deep concerns about the proposed changes to agricultural property relief (APR).

“Changes which leave many, not least elderly farmers, yet to make arrangements to transfer assets, devastated at the impact on their family farms.”

Samantha Niblett, Labour MP for South Derbyshire abstained after telling MPs: “I do plead with the government to look again at APR inheritance tax.

“Most farmers are not wealthy land barons, they live hand to mouth on tiny, sometimes non-existent profit margins. Many were explicitly advised not to hand over their farm to children, (but) now face enormous, unexpected tax bills.

“We must acknowledge a difficult truth: we have lost the trust of our farmers, and they deserve our utmost respect, our honesty and our unwavering support.”

Labour MPs from rural constituencies who did not vote included Tonia Antoniazzi (Gower), Julia Buckley (Shrewsbury), Jonathan Davies (Mid Derbyshire), Maya Ellis (Ribble Valley), and Anna Gelderd (South East Cornwall), Ben Goldsborough (South Norfolk), Alison Hume (Scarborough and Whitby), Terry Jermy (South West Norfolk), Jayne Kirkham (Truro and Falmouth), Noah Law (St Austell and Newquay), Perran Moon, (Camborne and Redruth), Samantha Niblett (South Derbyshire), Jenny Riddell-Carpenter (Suffolk Coastal), Henry Tufnell (Mid and South Pembrokeshire), John Whitby (Derbyshire Dales), Steve Witherden (Montgomeryshire and Glyndwr) and Amanda Hack, (North West Leicestershire).