Labour to vote against 'Granny Tax' as new figures show pensioners on modest incomes will be hit19 April 2012
Labour will today vote in the House of Commons against the tax rise on pensioners – the ‘granny tax’ – announced in last month’s Budget.
Ahead of the vote actor Richard Wilson will join shadow chancellor Ed Balls MP and shadow chief secretary Rachel Reeves MP to meet workers soon to turn 65 who will be hit by up to £323 a year from the 'granny tax'.
Labour is also releasing new figures from the House of Commons Library showing that “well over half” of the pensioners affected by the ‘granny tax’ will be well below the average taxpayer income – contradicting the Government’s claims that wealthy pensioners will bear the burden of the change.
Someone turning 65 after 5 April 2013 will be hit if they have an occupational or personal pension of as little as £67 a week, while existing pensioners with an occupational or personal pension of just £92 per week will be affected, according to the House of Commons Library figures.
Ed Balls MP, Labour’s Shadow Chancellor, said:
“George Osborne’s Budget has unraveled day by day for almost a month now, as its unfairnesses and lack of plan for jobs and growth have been exposed.
“Today we are urging Conservative and Lib Dem MPs to join us in defeating one of the most unfair policies in this botched Budget. They should join Labour in standing up for pensioners in their constituencies who have worked hard all their lives by voting down the granny tax.
“How can it be right that millions of pensioners are asked to pay more so that millionaires can pay less? After his £3 billion tax cut for the richest earners, it is no wonder that the Chancellor no longer uses his catchphrase: ‘we’re all in this together’.”
Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, added:
“Ministers have suggested that the granny tax will hit better off pensioners. But new analysis from the House of Commons Library shows that well over half of those affected by the ‘granny tax’ will be below the average taxpayer income.
“While Cabinet Ministers over 65 won’t be affected these figures show that someone retiring next year with a small occupational or personal pension of as little as £67 a week will be hit. And existing pensioners with an occupational or personal pension of just £92 per week will lose out.
“This cannot be fair at a time when the government is giving a £3 billion tax cut to people earning over £150,000 – worth over £40,000 for just 14,000 millionaires. That is why MPs from all parties should join us in voting against the granny tax today.”