Conservative Party<\/a> peer Baroness Altmann, a former pensions minister, warned: “Taxing these pensioners for perhaps a few pennies will be an administrative nightmare and cause distress and upset.”<\/p>\nAlan Barral, financial planner at Quilter Cheviot, said: “Frozen income tax thresholds may feel like a technical detail, but they have real consequences for retirees whose standard of living is being squeezed.”<\/p>\n
A Government spokesman responded: “We are committed to helping our pensioners live their lives with dignity and respect, which is why in April the basic and new state pension increased by 4.1 per cent.”<\/p>\n
“Our commitment to the triple lock means millions will see their pension rise by up to \u00a31,900 this parliament,” the Government stated.<\/p>\n
“Fiscal drag\u201d is when tax thresholds do not increase with the rising cost of living. This in turn has the effect of pulling more people into higher tax brackets.<\/p>\n
In 2023, the Institute for Fiscal Studies estimated that for every \u00a31 households gain from high-profile cuts to rates of income tax and national insurance, they will lose \u00a32 from freezes to other thresholds and stealthy policy options.<\/p>\n
\u201cThese freezes \u2013 which represent a stealthy and arbitrary way to raise tax revenue \u2013 often have a bigger impact on household incomes than more eye-catching discretionary measures,\u201d the IFS said.<\/p>\n","protected":false},"excerpt":{"rendered":"Pensioners could be slapped with a \u00a315,000 stealth tax raid to pay for a comfortable retirement, as fiscal…\n","protected":false},"author":2,"featured_media":258249,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,1267,474,2499,16,15],"class_list":{"0":"post-258248","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dwp","10":"tag-finance","11":"tag-personal-finance","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114838894310819215","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/258248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=258248"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/258248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/258249"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=258248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=258248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=258248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"State](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/0_bills1.jpg\")
State pensioners told they have to find extra \u00a315,000 thanks to HMRC tax raid<\/p>\n