More than 12,000 Woking pensioners are to be hit with a combined £12million stealth tax following the Budget, say the Liberal Democrats in a new analysis of Chancellor Jeremy Hunt’s measures.
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 lead to a £8 billion tax bombshell for pensioners across the country by 2027-28, or an average of £1,000 each.
Further analysis by the Lib Dems suggests this will impact on the estimated 12,029 pensioners in Woking who pay income tax.
Woking’s Lib Dems have said that this showed the Conservative Party has “abandoned” pensioners already struggling to pay the bills.
The Lib Dems add that they were the first party to commit in full to the triple lock for the upcoming general election, which ensures pensions will see an increase by whichever is highest of average earnings growth, CPI inflation or 2.5%.
Lib Dems have called on the Government to double the Winter Fuel Allowance to help pensioners, paid for by a “proper” windfall tax on the oil and gas companies.
Lib Dem spokesperson for Woking, Will Forster, said: “Pensioners who have worked hard and paid taxes all their lives are now being punished by this Conservative Government with a £1,000 stealth tax. Many are already struggling to make ends meet as heating bills and the cost of the weekly shop go through the roof. These tax hikes will pile on the misery.
“The Lib Dems are proud of introducing the triple lock to protect pensions. We will stand up for pensioners in our community who have been cruelly abandoned by the Conservatives, including calling on the Government to double the Winter Fuel Allowance.”