Shropshire Star

Thousands of taxpaying north Shropshire pensioners to be hit by '£1,000 stealth tax bombshell' - MP

Pensioners who receive enough money to have to pay income tax will be caught in the fiscal drag trap to the tune of £1,000 each over the next three years, says an opposition political party.

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North Shropshire MP Helen Morgan says this will amount to more than 18,000 pensions in her constituency being hit by a "£1,000 stealth tax bombshell" following the budget earlier this week.

The Liberal Democrats point to research by the Resolution Foundation think tank which takes a look at the Government's decision to freeze income tax thresholds. The threshold is relevant to all income tax payers and says that up to £12,570 of income is free of income tax.

The Lib Dems say that the decision to freeze income tax thresholds will lead to a £8 billion tax bombshell for pensioners across the country by 2027-28 – an average of £1,000 each in the amount of income 'lost' when allowances do not rise.

Further analysis by the Liberal Democrats suggests that this will hit the 18,000+ income tax payers out of the 26,000 pensioners in North Shropshire.

Mrs Morgan has previously called on the Government to double the Winter Fuel Allowance to offer extra help to pensioners, paid for by a proper windfall tax on the oil and gas companies.

She has also spoken out against plans to end the Triple Lock, a policy that was mooted by the Chancellor in the run up to the last budget.

The MP now claims that this latest stealth tax will ‘hit pensioners in their pocket’ and should be stopped.

She said: “Pensioners who have worked hard and paid taxes all their lives are now being punished by this Conservative government with a £1,000 stealth tax.

“Many elderly people are already struggling to make ends meet as heating bills and the cost of the weekly shop go through the roof. In a rural area like North Shropshire, where many homes are off-grid and harder to heat, the last winter was particularly punishing.

“This latest change to tax rules will hit pensioners in their pocket in the middle of a cost-of-living crisis, and must be halted.”