PARLIAMENTARY WRITTEN QUESTION
(17 December 2024)

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of maintaining the personal tax allowance on (a) pensioners and (b) low-income households in each of the next three years.

Asked by:
Ben Maguire (Liberal Democrat)

This Government is committed to keeping taxes as low as possible for working people and pensioners while ensuring fiscal responsibility, which is why it is not extending the freeze on personal tax thresholds that was implemented by the previous Government and is instead allowing them to rise with inflation from April 2028.

The Government provides additional support for both pensioners and low-income households. At the Autumn Budget, the Government announced that the basic and new State Pension will increase by 4.1% from April 2025. This means those on a full new State Pension will be getting an additional £470 a year. The Government also announced a 6.7% increase to the National Living Wage (NLW) from April 2025. This represents an increase of £1,400 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 3 million low-paid workers.

Answered by:
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1 January 1970