- Wednesday, 11 April 2012
The tax allowance for over 65's introduced by Winston Churchill was in recognition that pensioners have a lower average income and have already spent their lives paying tax and national insurance. This is still the position today. George Osborne's decision to end this tax break is on a par with Gordon Brown removing the 10% tax rate.
George Osborne claims that pensioners will not be worse off because he is increasing pensions to a fixed £140 weekly payment. My understanding is that this will not apply to current pensioners but only to those who retire in future. Pensions will increase in April by £5.30. This is because of an increase in the price index. Therefore it is rather ingenuous of Vince Cable to imply that this is an example of the generosity of the government. Also what about the crippling change to the pension credit?
Mr E F Chubb, London. By email
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