I believe that those who have worked hard during their lives should have dignity and security in their retirement. The Conservatives came to power in 2010 after Labour had hit pensioners with a £118 billion pensions tax raid and a paltry 75p per week increase to the State Pension. Since 2010, we have made it a priority to give people peace of mind in their retirement. We introduced the Triple Lock, which has seen the basic State Pension rise by £3,700 since 2010.
This year, the new State Pension increased by £900. We will continue to do everything we can to provide pensioners with dignity in retirement and ensure the new State Pension is not dragged into income tax for the first time in history by introducing the new Triple Lock Plus. This has two elements:
1. Continuing to uprate the State Pension in line with the highest of prices, earnings or 2.5%.
2. Ensuring that from next year the taxfree personal allowance for pensioners also rises by the highest of prices, earnings or 2.5%, guaranteeing that the new State Pension is always below the tax-free threshold
Under our new Pensions Tax Guarantee, the Conservatives will not introduce any new taxes on pensions. We will maintain the 25% tax free lump sum and maintain tax relief on pension contributions at their marginal rate. We will maintain all current pensioner benefits, including free bus passes, Winter Fuel Payments, free prescriptions and TV licences.
