Winter Fuel Payment: Pensioners express anger with government
Up to 1.5 million British pensioners could be dragged into paying higher tax from this year, as Rachel Reeves plans a major stealth tax hike.
The Chancellor is scrambling to find extra sources of cash ahead of the Budget so she can fund Labour’s manifesto pledges.
DON'T MISS
Powered by
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
Rachel Reeves warned by expert over 'disaster' plans to almost double one tax
80 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
State Pension warning as millions pushed to pay tax for the first time
Comments
Labour may hike inheritance tax to 50% and tax every gift you get in brutal Budget raid
435 Comments
Chancellor's budget decisions could worsen UK's economic growth prospects
6 Comments
Labour told tax raid will scare away mega-rich - 'costs UK ￡6.5bn and 23k jobs'
31 Comments
Thousands of pensioners hit with April HMRC warning
3 Comments
HMRC two-week deadline alert 'or face ￡100 fine'
1 Comments
National Insurance tax raid warning as expert warns Rachel Reeves could close 'loophole'
15 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
131 Comments
Rachel Reeves considers ￡15bn inheritance tax raid on grieving families
594 Comments
Pensioners warned they could be hammered by 70% HMRC penalty
153 Comments
Rachel Reeves will 'breach' Labour manifesto promise with national insurance change
46 Comments
Rachel Reeves's expected stealth tax could slash incomes for 1m and clobber pensioners
280 Comments
Rachel Reeves to unleash triple tax raid - and state pensioners won't escape
1254 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
12 Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
201 Comments
Wes Streeting skewered by Sky's Trevor Phillips over Labour tax raid plot
236 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
Rachel Reeves warned by expert over 'disaster' plans to almost double one tax
80 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
State Pension warning as millions pushed to pay tax for the first time
Comments
Labour may hike inheritance tax to 50% and tax every gift you get in brutal Budget raid
435 Comments
Chancellor's budget decisions could worsen UK's economic growth prospects
6 Comments
Labour told tax raid will scare away mega-rich - 'costs UK ￡6.5bn and 23k jobs'
31 Comments
Thousands of pensioners hit with April HMRC warning
3 Comments
HMRC two-week deadline alert 'or face ￡100 fine'
1 Comments
National Insurance tax raid warning as expert warns Rachel Reeves could close 'loophole'
15 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
131 Comments
Rachel Reeves considers ￡15bn inheritance tax raid on grieving families
594 Comments
Pensioners warned they could be hammered by 70% HMRC penalty
153 Comments
Rachel Reeves will 'breach' Labour manifesto promise with national insurance change
46 Comments
Rachel Reeves's expected stealth tax could slash incomes for 1m and clobber pensioners
280 Comments
Rachel Reeves to unleash triple tax raid - and state pensioners won't escape
1254 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
12 Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
201 Comments
Wes Streeting skewered by Sky's Trevor Phillips over Labour tax raid plot
236 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
Rachel Reeves warned by expert over 'disaster' plans to almost double one tax
80 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
State Pension warning as millions pushed to pay tax for the first time
Comments
Labour may hike inheritance tax to 50% and tax every gift you get in brutal Budget raid
435 Comments
Chancellor's budget decisions could worsen UK's economic growth prospects
6 Comments
Labour told tax raid will scare away mega-rich - 'costs UK ￡6.5bn and 23k jobs'
31 Comments
One move would be to continue the freeze in income tax thresholds, which would raise billions for the Treasury as pay rises and inflation mean more are dragged into the higher rate and top rate of income tax, while not noticing it’s the government’s fault.
However this policy will also hit as many as 1.5 million pensioners, according to new analysis by wealth management company Quilter.
The threat comes in addition to warnings during the general election that for the first time ever those on the state pension will be dragged into paying income tax for the first time ever.
READ MORE: State pension warning to act on move that will make 'huge difference to future'
Rachel Reeves may whack pensioners with stealth taxes (Image: Getty)
The state pension is currently ￡11,502, but this is on course to rise by ￡460 from April 2025, taking those in receipt dangerously close to the current tax threshold of ￡12,570.
A further rise in 2026 would tip millions of pensioners into paying tax for the first time.
Charities for older people have now said that Rachel Reeves’ tax threshold will hurt pensioners who are already “trying to stretch their low incomes”.
Retirees will be forced to find a spare ￡300 this winter after the Government took the controversial decision to strip most pensioners of Winter Fuel Allowance, in addition to rising energy costs and the general cost of living crisis.
Tax thresholds have been frozen since 2021, however Labour’s manifesto pledged to not raise taxes on “working people”, something continuing to freeze the rates may breach.
The thresholds are not expected to resume rising with inflation again until 2028.
Don't miss...
Labour tax hikes at Budget could damage UK competitiveness and growth [LATEST]
Labour's winter fuel payment cuts set to hit 84% of disabled pensioners - poll [LATEST]
Robert Jenrick calls for grooming gang crackdown with mandatory life sentences [LATEST]
The Government may whack pensioners again (Image: Getty)
SUBSCRIBE Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
Quilter’s Jon Greer told the i newspaper: “If Labour decides to keep income tax thresholds frozen until 2030 it could potentially drag 1-1.5 million extra pensioners into higher or additional rate tax brackets.
“[It is] a move that would boost government coffers by stealth while allowing Labour to maintain that it has not increased the headline rate of income tax.”
A Freedom of Information request by the firm revealed that 3.1 million pensioners are already set to be dragged into paying either the 40% or 45% tax rate by 2027/8 due to the existing thresholds freeze.
DON'T MISS
Powered by
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
Rachel Reeves warned by expert over 'disaster' plans to almost double one tax
80 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
State Pension warning as millions pushed to pay tax for the first time
Comments
Labour may hike inheritance tax to 50% and tax every gift you get in brutal Budget raid
435 Comments
Chancellor's budget decisions could worsen UK's economic growth prospects
6 Comments
Labour told tax raid will scare away mega-rich - 'costs UK ￡6.5bn and 23k jobs'
31 Comments
Thousands of pensioners hit with April HMRC warning
3 Comments
HMRC two-week deadline alert 'or face ￡100 fine'
1 Comments
National Insurance tax raid warning as expert warns Rachel Reeves could close 'loophole'
15 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
135 Comments
Rachel Reeves considers ￡15bn inheritance tax raid on grieving families
594 Comments
Pensioners warned they could be hammered by 70% HMRC penalty
153 Comments
Rachel Reeves will 'breach' Labour manifesto promise with national insurance change
46 Comments
Rachel Reeves's expected stealth tax could slash incomes for 1m and clobber pensioners
280 Comments
Rachel Reeves to unleash triple tax raid - and state pensioners won't escape
1254 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
12 Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
201 Comments
Wes Streeting skewered by Sky's Trevor Phillips over Labour tax raid plot
236 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
Rachel Reeves warned by expert over 'disaster' plans to almost double one tax
80 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
State Pension warning as millions pushed to pay tax for the first time
Comments
Labour may hike inheritance tax to 50% and tax every gift you get in brutal Budget raid
435 Comments
Chancellor's budget decisions could worsen UK's economic growth prospects
6 Comments
Labour told tax raid will scare away mega-rich - 'costs UK ￡6.5bn and 23k jobs'
31 Comments
Thousands of pensioners hit with April HMRC warning
3 Comments
HMRC two-week deadline alert 'or face ￡100 fine'
1 Comments
National Insurance tax raid warning as expert warns Rachel Reeves could close 'loophole'
15 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
135 Comments
Rachel Reeves considers ￡15bn inheritance tax raid on grieving families
594 Comments
Pensioners warned they could be hammered by 70% HMRC penalty
153 Comments
Rachel Reeves will 'breach' Labour manifesto promise with national insurance change
46 Comments
Rachel Reeves's expected stealth tax could slash incomes for 1m and clobber pensioners
280 Comments
Rachel Reeves to unleash triple tax raid - and state pensioners won't escape
1254 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
12 Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
201 Comments
Wes Streeting skewered by Sky's Trevor Phillips over Labour tax raid plot
236 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
Rachel Reeves warned by expert over 'disaster' plans to almost double one tax
80 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
State Pension warning as millions pushed to pay tax for the first time
Comments
Labour may hike inheritance tax to 50% and tax every gift you get in brutal Budget raid
435 Comments
Chancellor's budget decisions could worsen UK's economic growth prospects
6 Comments
Labour told tax raid will scare away mega-rich - 'costs UK ￡6.5bn and 23k jobs'
31 Comments
Trending
Caroline Abrahams, charity director at Age UK, said: “It would be disappointing if the Chancellor declines to raise personal allowances for income tax at the Budget, since this would take us closer to a situation in which pensioners whose only income is their state pension become liable to pay this tax.
“It makes no sense for the state to give older people money with one hand while taking it away with the other, but that’s where we are heading as things stand.
“What’s more, the value of the state pension is modest, particularly when compared to that in other similar countries, and older people who depend on it as their sole source of income cannot afford any deductions if they’re to live decently.”