Sandra Wrench, a 74-year-old Bedford resident who dedicated 40 years to the Department for Work and Pensions (DWP), has raised concerns about the fairness of recent tax policies affecting retirees. While Labour Party Chancellor Rachel Reeves has confirmed that pensioners receiving only the basic or new state pension will be exempt from paying tax, Wrench points out that many older retirees with the “old” state pension still face tax liabilities.
Wrench currently pays £1,633 annually in tax on her old state pension. Though she manages her payments, she worries about other pensioners who might struggle, particularly those with a modest occupational pension alongside their state pension. She describes the situation as “effectively age discrimination,” questioning why some pensioners benefit from exemptions while others do not.
This concern is shared by Dennis Reed, director of the Silver Voices pensioner campaign group, who describes the tax discrepancy as “a grossly unfair anomaly.” Reed criticizes the government’s last-minute Budget concession, calling for the unfreezing of the lower tax threshold for all pensioners to resolve the issue fairly.
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Sandra adds that increasing the tax threshold by even £1,000 could significantly ease the burden on pensioners and simplify tax administration for the DWP. The debate highlights the ongoing challenges in pension taxation and the need for reform that considers all retirees fairly.