WINTER FUEL PENSIONERS NOW FACE TAX RAID

PENSIONERS losing winter fuel payments are among an extra 120,000 people being hit with tax demands for the first time.

- Sam Lister

A freeze in the amount of income allowed before the taxman claws in cash means more retirees will have to pay up after increases in the state pension.

Former pensions minister Sir Steve Webb said: "The long-term freeze in the value of the tax-free personal allowance is dragging more and more people into the income tax net - including many pensioners." Research by Sir Steve, a partner at consultancy LCP, found the average tax demand was for £665.

He said the figures showed it was time for the Government to change the personal tax threshold.

And Caroline Abrahams, charity director at Age UK, added: "The last thing we want is for older people who are already struggling to manage financially to have to start paying income tax. It is high time the Government started increasing personal allowances again." It comes as Prime Minister Keir Starmer refused yesterday to rule out adding more tax misery in the Budget on October 30.

Sir Steve said: "Where the tax due can be collected via a tax code on a wage or a private pension payment then the taxpayer does not need to take any further action.

"But if someone is over the tax threshold purely on the basis of state pension and investment income, they may well find they receive an unwelcome demand at the end of the tax year.

"More and more people every year are finding themselves faced with such demands and will need to budget in anticipation.