Rishi Sunak vows tax cut for pensioners with ‘triple lock

Rishi Sunak vows tax cut for pensioners with ‘triple lock plus’

The Conservatives have promised to cut taxes for pensioners by creating a new “age-related” tax-free allowance.

The party has announced plans to increase the personal allowance for pensioners in line with the triple lock by introducing the new age-related allowance.

The policy would mean that for pensioners, both the state pension and their tax-free allowance will rise in line with the highest of earnings, wages or 2.5 per cent every year. 

At present, people can receive £12,570 a year of their pensions before they start paying income tax on them, the same figure as the personal allowance for those who work.

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According to the party, this new “triple lock plus”, introduced from from April 2025, would amount to a tax cut of around £100 for 8 million pensioners next year, and almost £300 a year by the end of the next parliament. 

Rishi Sunak said the move “demonstrates we are on the side of pensioners”, and would bring people “peace of mind and security in retirement”.

The Conservative Party has already stated its commitment to the “triple lock”, which sees the state pension rise by either the rate of inflation, average earnings or 2.5 per cent in April each year — whichever is highest.

On current forecasts, the state pension is expected to rise by £430 next April, and by around £1,700 a year by the end of the parliament.

The Conservatives have said the new triple lock plus policy will cost £2.4 billion a year by 2029/30 and be funded through the party’s plan to raise an extra £6 billion a year by the end of the next parliament by clamping down on tax avoidance and evasion.

It is the second policy in recent days to have the majority of its funding drawn from this measure after the National Service scheme, which was announced over the weekend.

Rishi Sunak unveils plans for mandatory national service to inspire ‘pride in our country’

Commenting on the new announcement, Rishi Sunak said: “I passionately believe that those who have worked hard all their lives should have peace of mind and security in retirement.

“Thanks to the Conservatives’ Triple Lock, pensions have risen by £900 this year and now we will cut their taxes by around £100 next year.”

He added: “This bold action demonstrates we are on the side of pensioners. The alternative is Labour dragging everyone in receipt of the full state pension into income tax for the first time in history.”

Work and pensions secretary Mel Stride said: “A Conservative government is the only one which can provide pensioners the peace of mind in retirement they deserve.

“Labour’s record speaks for itself. The last Labour government waged an all-out assault on pensioners, with a £118 billion pensions tax raid and an insulting 75p increase to the state pension.

“Sir Keir Starmer can pay lip service to pensioners until he’s blue in the face, but we know it will always be the same old Labour, putting our pensioners at the back of the queue.”

Responding to the announcement, shadow paymaster general Jonathan Ashworth said: “Why would anyone believe the Tories and Rishi Sunak on tax after they left the country with the highest tax burden in 70 years?

“This is just another desperate move from a chaotic Tory party torching any remaining facade of its claims to economic credibility.

“Not only have they promised to spend tens of billions of pounds since this campaign began, they also have a completely unfunded £46 billion policy to scrap national insurance that threatens the very basis of the state pension.

“Labour will protect the triple lock. But Rishi Sunak is planning to reward Britain’s pensioners for their loyalty by stabbing them in the back, just like he did to Boris Johnson and just like he has done to his own MPs.”

Also responding, Liberal Democrat Treasury spokesperson Sarah Olney MP said: “Rishi Sunak’s stealth tax hikes will blow a £1,000 hole in pensioners’ pockets by 2027, over four times more than what he is giving back with this meagre announcement.

“The Conservative Party has hammered pensioners with years of unfair tax hikes and broken their word on the triple lock. People won’t be fooled by yet another empty promise from Rishi Sunak after this record of failure.

“Liberal Democrats are proud we brought in the triple lock and will continue to stand up for the millions of pensioners who have been so badly let down by this Conservative government.”

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