Sir Keir Starmer was asked about tax thresholds during PMQs (Image: PA)
Sir Keir Starmer was warned he risks "another winter fuel crisis" after he refused to rule out extending the freeze on tax thresholds. Tory leader Kemi Badenoch challenged the Prime Minister over the issue at PMQs today.
She said pensioners face a "retirement tax" if the freeze on the tax-free personal allowance, which is due to end in April 2028, is not lifted. The leader of the Opposition said: "The whole house would have heard him fail to rule out freezing tax thresholds. He could say with the first question, he could promise, but he couldn't this time round.
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"But what does this mean, Mr Speaker? He's talking about record investment and more jobs, we know that people are losing their jobs. Unemployment has gone up every single month since their year in office, but what does it mean on this issue of tax thresholds?
"It means that under Labour, millions of our poorest pensioners face being dragged into income tax for the first time ever. Does the Prime Minister think it is right that struggling pensioners should face a retirement tax?"
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Sir Keir replied: "We will stick to our manifesto commitments, we will stick to our fiscal rules. This is a language they don't understand. That's what got us into the problem in the first place."
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The Silver Voices campaign group for older people hit out at the Prime Minister over his response.
Director Dennis Reed said: "Keir Starmer was skewered by the Leader of the Opposition when Kemi Badenoch asked him about the impact of keeping the freeze on the lower tax threshold on poor pensioners.
"He appeared flummoxed by the question as if he had never been advised by his Chancellor that millions of older people would soon be paying income tax on their basic state pension unless urgent action is taken in the next Budget.
"True to form, the PM ignored the question and did not mention the challenges facing older people at all.
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"The old age tax trap will become another winter fuel crisis unless the Government recognises the problem and consults with us on solutions."
The tax-free personal allowance has been frozen at ￡12,570 until 2028, but the full new state pension is set to exceed this by April 2027 due to triple lock increases of at least 2.5% a year.
It comes after the Labour Government was forced to U-turn on scrapping winter fuel payments for most pensioners following an intense backlash.
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