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Budget 12: Thinktank backs Osborne’s “granny tax”

The IPPR’s analysis of the policy finds that on average it will cost pensioners around £220 a year by April 2016.

The richest 20 per cent of pensioners will not be affected because they have an income of over £24,000 and so do not benefit from the age related allowance. Those in the second richest 20 per cent of the income distribution will be hit to the tune of £347 a year.

The poorerst fifth of pensioner households will be worse of by just £7 per year because most do not have incomes high enough to benefit from the age related allowance.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. The comment by the think tank is not well thought out. UK has the lowest state pensions in europe; in fact lower than many developing countries. Those like myself sacrificed holidays, worked overtime to put money into pensions, the income of which Gordon Brown started taxing. On top of this the freezing of allownace. People are most vulnerable in their old age, and to rob them of their entitlements is very sad indeed.

  2. Agree Jack. Yet again the responsible people who have planned for their retirement are penalised while those who do stuff all prosper. According to the Mail today those approaching retirement will lose £300+. What they have forgotten is that for the majority who do not have the luxury of final salary pensions, QE has already slashed the value of their pension – a factor conveniently overlooked. Bottom line is, £3bn was taken from pensioners and not replaced – probably to fund the over generous rise in state pensions and the singular failure of the coalition to deal with public sector finances and pensions.

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