Rachel Reeves rules out National Insurance hike for working pensioners
7 August 2024, 08:12
Working pensioners will not face paying National Insurance as the government looks to fill a £22 billion hole in the country’s finances, Rachel Reeves says.
Listen to this article
Loading audio...
Speaking in New York this week, the Chancellor said she has no plans to hit older workers with the tax increase.
This comes after Labour announced plans to end winter fuel allowance for millions of pensioners.
Ms Reeves said: “We don’t want to increase taxes on working people.
"And we will be keeping income tax, National insurance and value added tax at the rates they are for the duration of this Parliament.
Read more: Named and shamed: Mugshots of rioters revealed as over 100 charged after violent disorder sweeps UK
“I would like taxes on working people to be lower but I believe that you can’t make promises without being able to say where the money is coming from.”
Ms Reeves is yet to rule out a hike in capital gains tax, saying the government will need to make “tough decision” when it sets out the Budget in October.
Announcing the end of winter fuel allowance for certain pensioners, Rachel Reeves said: "Today I'm making the difficult decision that those not in receipt of pension credit or certain other means-tested benefits will no longer receive the winter fuel payment from this year onwards.
"The Government will continue to provide winter fuel payments worth £200 for households receiving pension credit or £300 to households in receipt of pension credit with someone over the age of 80.
"Let me be clear, this is not a decision I wanted to make, nor is it the one that I expected to make, but these are the necessary and urgent decisions that I must make.
"It is the responsible thing to do to fix the foundations of our economy and bring back economic stability."
The announcement came as the Chancellor warned the Conservative party had left a £22 billion "black hole" in public spending.
