Thursday, 22 March 2012

Budget Blow For Pensioners

SNP Work and Pensions spokesperson Eilidh Whiteford MP has warned that the Chancellors decision to freeze personal tax allowances for the over-65s will hit pensioners hard.  Dr Whiteford contrasted the Coalition Government’s treatment of pensioners with tax cut given to the highest earners.

Higher personal tax allowances granted to those over the age of 65 – £10,500 for those aged 65 to 74 and £10,660 for those aged 75 plus (2012-13) – will be frozen until they come into line with the basic personal tax allowance.

Dr Whiteford said:

“The Budget truly fails the fairness test when millions of pensioners are penalised while millionaires get a tax cut from the Tories.

“While, as expected, the Chancellor increased personal tax allowances, his decision to freeze the higher age allowances granted to those aged over 65 will hit pensioners hard.

“The devil is always in the detail with Treasury announcements, and the Chancellor must now say whether any assessment was made of the impact that this decision on pensioner households.”