Millions to be pulled into old-age tax trap

Pressure...Rachel Reeves has to make up public finances shortfall

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Treasury is an insult to all older people.” Millions of poorer pensioners face being dragged into an “old-age tax trap’ as Chancellor Rachel Reeves scrambles to fill a black hole in the public finances.

Mr Reed said the possible tax raid was “two fingers” to the petition, which has grown to 125,000 names, and shows how low pensioner concerns are ranked in the Treasury.

He accused ministers of “still treating pensioners with contempt”.

He added: “We worry that this anti-pensioner attitude will carry forward to the autumn Budget and that the old-age tax trap will be deepened by extending the freeze on lower tax thresholds until the end of this Parliament.

“Any continuation of the freeze will be seen as yet another betrayal of the older generations. But we are confident that the public will support our aim to stop the basic state pension from being taxed, just like they backed us up over winter fuel.”

HMRC admitted if the lower tax threshold remains, 3.4 million more people over 70 will be sucked into the tax system over three years.