Jeremy Hunt makes one main pension promise that may save pensioners hundreds | Politics | News | EUROtoday

Chancellor Jeremy Hunt has pledged that the Conservative Party won’t introduce new taxes on pensions or enhance current ones, following accusations that Labour plans to impose “back-door taxes.”

Speaking as he unveiled the “Pensions Tax Guarantee,” Hunt assured that the 25 % tax-free lump sum will stay unchanged, tax reduction on contributions might be preserved, and nationwide insurance coverage won’t be prolonged to employer contributions.

In his announcement, Hunt warned that Labour, below chief Keir Starmer, would repeat previous actions just like these of former Prime Minister Gordon Brown, who abolished the dividend tax credit score in 1997.

“Labour will do what they always do and betray pension holders to fill their fiscal blackhole,” Hunt asserted.

The Conservatives are actively courting the older technology, not too long ago reinforcing their dedication to the “Triple Lock” on state pensions.

This coverage ensures that pension payouts enhance according to the best of inflation, wage progress, or 2.5 %, and that non-public allowances for pensioners may even rise accordingly, safeguarding them from further taxes.

“Conservatives have always looked after people’s pensions, and our Pension’s Tax Guarantee will mean there will be no tax rises or new taxes on workplace pensions for the whole of the next Parliament,” Hunt said.

He in contrast this to Labour’s alleged plans to introduce a “Retirement Tax” on the state pension and reintroduce the lifetime allowance, which the Conservatives abolished.

In an interview with the Sunday Telegraph, Hunt expressed considerations about Labour’s potential fiscal insurance policies.

“We are worried that, just as Labour did in the past when they have a black hole in their finances, they will go for back-door taxes on pensions,” he mentioned.

Hunt added that the Conservative Party has a monitor report of supporting pensioners, referring to the introduction of the triple lock, growing the state pension by £3,700, lifting practically 1 / 4 of 1,000,000 pensioners out of poverty, and abolishing the lifetime allowance on pension pots.