Only they will not \u2013 because a day later, Reeves said that the Treasury would work out a mechanism to exempt them.<\/p>\n
This is obviously good news for pensioners. With the state pension rising to \u00a312,547.60 a year from next April, it will be just below the personal allowance of \u00a312,570. With the triple lock set to stay until at least the next election \u2013 due in 2029 \u2013 the state pension was sure to go beyond this threshold of when people start paying tax.<\/p>\n
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With this exemption and the triple lock \u2013 which raises pensions by the higher of inflation, wage earnings or 2.5 per cent \u2013 guaranteed until the end of this Parliament, you would think pensioners would have welcomed the Budget. But they did not.<\/p>\n
Polling carried out on behalf of The i Paper by BMG Research suggested this group are among the cohorts most likely to hold a negative view of the Budget. Two-thirds (66 per cent) of those aged 55+ and 71 per cent of retirees had a dim view of Reeves\u2019s fiscal statement.<\/p>\n
Budget sweeteners for pensioners<\/p>\n
One issue puzzling MPs is why more was not made of the exemption for pensioners; why not announce it on the day, rather than let confusion reign for 24 hours?<\/p>\n
It felt like a missed opportunity to parrot another example of how this Labour Government is bending over backwards to protect the incomes of retirees.<\/p>\n
There were other goodies for pensioners.<\/p>\n
The choice to maintain the state pension triple lock<\/a> will cost \u00a312bn more per year, rising to an estimated \u00a315bn by 2030.<\/p>\n Wealthier pensioners who are able to save significant sums of money were exempt from widely trailed cash ISA restrictions, which will see all other savers\u2019 limit cut from \u00a320,000 to \u00a312,000.<\/a><\/p>\n The over-65s can continue to save an extra \u00a38,000 a year tax-free.<\/p>\n And this week, the Pension Schemes Bill, which will improve the retirement incomes of millions by boosting the savings of schemes that have been eroded by inflation, will be back in the Commons for its third reading.<\/p>\n Yet, despite policy after policy seemingly protecting the incomes of pensioners, there seems to be a persistent sense of disappointment directed at this Government from older voters.<\/p>\n Winter Fuel cut destroyed \u2018goodwill\u2019<\/p>\n Does this Government have a problem reaching pensioners? Some Labour MPs think the row over winter fuel payments early on in this Government\u2019s term burnt bridges that they will struggle to ever repair.<\/p>\n The Government initially tried to scrap the benefit, which helps to pay for heating costs, for all but the poorest pensioners. But Reeves was eventually forced to backtrack and reinstated the payment, worth up to \u00a3300, for those with an income below \u00a335,000.<\/p>\n The pension vote is not one that has historically been the concern of Labour politicians \u2013 with the cohort generally considered Tory territory \u2013 but that is changing.<\/p>\n And Labour insiders now say that, despite the boost in pensioner living standards in recent years due to significant increases to the state pension, there are still many still struggling with rising living costs.<\/p>\n Jon Trickett, MP for Normanton and Hemsworth, rebelled against the Government and voted against the winter fuel cut when it was first announced. He said this decision had destroyed any \u201cgoodwill\u201d older voters had towards the Labour Government.<\/p>\n \u201cThere are many working-class pensioners in my constituency who struggle to get by, particularly in the cold winter months. They\u2019re a generation of heroes who helped to rebuild the country after the war. We should respect them,\u201d he told The i Paper.<\/p>\n \u201cI voted against removing the winter fuel payment because it is a lifeline for many. The Labour Government burned a lot of goodwill with that policy and they must learn from their mistakes.\u201d<\/p>\n Another Labour MP told The i Paper they are \u201cabsolutely concerned about the pension vote, to put it mildly\u201d.<\/p>\n \u201cFrankly, there\u2019s a bit of me that thinks that ship\u2019s sailed after the winter fuel catastrophe. In a seat like mine it\u2019s a massive threat, and No 10 needs to think seriously about how to win their trust back,\u201d the MP said.<\/p>\n Soon-to-retire also alienated<\/p>\n![\"This](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/12\/SEI_275791019.jpg\")
Reeves delivering the Budget on Wednesday (Photo: House of Commons\/AFP\/Getty)<\/p>\n
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