RISHI Sunak last night promised OAPs a boost of almost £2,000 a year if he is re-elected.
It comes from guaranteeing the Triple Lock and raising their tax allowance, with the full benefit felt by 2029 — giving “peace of mind and security”.
The financial sweetener, which will raise the point at which pensioners begin to pay income tax, will kick in from next April in an attempt to shore up their core vote.
It will put Labour under pressure to match the five-year £2.4billion spending commitment.
The Prime Minister said that people must have “peace of mind and security in retirement”.
Proposals to be included in the party’s manifesto will see both the state pension and allowance go up by the triple lock — whichever is highest out of the rate of inflation, earnings or 2.5 per cent.
The forecast rise in the state pension will be £1,677 a year by 2029, with the tax-free allowance worth £275 a year by then.
RISHI Sunak yesterday offered what he believes is clear blue water between the Conservatives and Labour.
His offer on pensions is designed to shore up wavering older voters.
A boost rising to almost £2,000 by 2029 for OAPs backs up years of action to protect their income and assets.
Coupled with his surprise pledge on National Service, it’s clear the PM is
aiming at his core vote.
Both are welcome ideas.
What is needed now are new policies to help younger voters and new families.
We hope Rishi has something up his sleeve to solve the desperate housing shortage, which is pricing young people out of home ownership.
As it stands, many see no reason to even consider voting Tory.
Let’s see what the PM can do for them, too
Next year alone the average pensioner will see their state pension increased by £428 and the income tax cut will be worth £95.
The PM added: “Thanks to the Conservatives’ triple lock, pensions have risen by £900 this year and now we will cut their taxes by around £100 next year. This bold action demonstrates we are on the side of pensioners.”
The proposal comes after Mr Sunak was criticised over his treatment of pensioners after the Government twice cut National Insurance — which OAPs don’t pay.
But Labour seized on Budget remarks by Chancellor Jeremy Hunt that the Tories will eventually abolish National Insurance, claiming it will create a £46billion black hole in funding earmarked for the state pension and NHS.
The Tories also plan to guarantee in legislation that OAPs’ personal allowance will always be higher than the level of the state pension.
Party insiders say that by 2027/28, at the current rate, the state pension will be £12,578. The tax-free allowance is now £12,570.
Without action, it would mean the elderly having to go through a red-tape headache of filling out a self-assessment form.
Funding for the new Tory plans will come from a previously announced proposal to crack down on tax avoidance and evasion.
Welfare Secretary Mel Stride said: “Only a Conservative government can provide pensioners with the peace of mind they deserve.
“Labour’s record speaks for itself. The last Labour government completely failed pensioners, with a £118billion pensions tax raid and an insulting 75p increase to the state pension.
“Sir Keir Starmer can pay lip service to supporting pensioners but we know it will always be the same old Labour, putting our pensioners at the back of the queue.”
Labour tonight said it remained committed to the triple lock.
Shadow Chancellor Rachel Reeves has also said income tax or National Insurance will not rise under a Labour government.
Shadow Paymaster General Jonathan Ashworth said tonight: “Why would anyone believe the Tories and Rishi Sunak on tax after they left the country with the highest tax burden in 70 years?
“This is just another desperate move from a chaotic Tory party torching any remaining facade of its claims to economic credibility.
“Not only have they promised to spend tens of billions of pounds since this campaign began, they also have a completely unfunded £46billion policy to scrap National Insurance that threatens the very basis of the state pension.
“Labour will protect the triple lock. But Rishi Sunak is planning to reward Britain’s pensioners for their loyalty by stabbing them in the back, just like he did to Boris Johnson and just like he has done to his own MPs.”
Ms Reeves will today tell business leaders that she will bring growth back to Britain to help working people.
She will say Labour will offer “a government that is pro-worker and pro-business, in the knowledge that each depends upon the success of the other”.
