Tories float Triple Lock Pension Plus proposal

The Conservatives are trying to woo older voters through a proposal to ensure they don’t end up paying tax on their state pension as a result of the Conservatives’ decision to freeze tax-free personal allowance thresholds.

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The Conservatives have said they will raise the tax-free pension allowance if they win the general election.

Under the “Triple Lock Plus” plans, the tax-free personal allowance for pensioners will increase by at least 2.5% or in line with the highest of earnings or inflation. The proposal comes amid fears that the freezing of income tax thresholds since 2021 could see hundreds of thousands of people on the state pension being taxed on their income by 2027.

Labour said the government’s plan was not “credible”, stating that it contradicted previous Conservative policy which has been to freeze income thresholds.

Lily Megson, Policy Director at My Pension Expert, said: “It’s a clear sign that Sunak is reverting to the old tried-and-tested model of trying to woo older voters immediately before a general election. Sadly, although the ‘Triple Lock Plus’ undoubtedly has merits, last-minute policies from a party bracing for defeat are not what pension planners need.

“For too long, those in or nearing retirement have been overlooked. Meaningful policy to help address the financial challenges faced by over-60s has been lacking for many years, especially during the cost-of-living crisis. Sunak’s late bid to close the gap on Labour by announcing favourable tax changes for those receiving a pension will do little to offer meaningful long-term assistance to those who have struggled under the burden of high inflation, high interest rates and a high tax burden.”