The Conservative Party’s new “Triple Lock Plus” policy aims to bolster pensioners’ financial security by ensuring annual increases in state pensions and personal tax allowances, thereby regaining support from older voters. Here’s the full story.
“Triple Lock Plus”
The Conservative Party has announced a new pension policy, dubbed the “Triple Lock Plus,” in a strategic move to win the support of older voters.
Guarantee for Pensioners
This initiative aims to enhance the financial security of pensioners by guaranteeing that both the state pension and the personal tax allowance for pensioners will increase annually by the highest rate of inflation, average earnings, or 2.5%, whichever is greater.
“Grey Vote”
Prime Minister Rishi Sunak introduced this policy to win back what David Cameron dubbed the “grey vote” after a Techne UK poll showed a substantial reduction in the Conservatives’ vote share with pensioners.
40% of Over 65s
According to The Economist, 40% of people aged 65 and over say they will vote for the Conservatives.
Propping up the Vote
However, the party is still trailing Labour in the polls and needs to ensure that its regular vote share among people of pension age remains strong.
Building Upon Cameron’s Plan
The “Triple Lock Plus” builds upon the existing triple lock mechanism established in 2010 by then-Prime Minister David Cameron.
Minimum of 2.5%
This policy ensures that the state pension increases annually by the highest of inflation, average wage growth, or a minimum of 2.5%.
Keeping Pace
The new enhancement will extend this protection to pensioners’ income tax personal allowance, effectively ensuring that both pensions and tax-free allowances keep pace with economic changes.
£100 Annually
From April next year, the personal allowance for pensioners will rise in line with the triple lock, which will result in a tax cut of approximately £100 for around 8 million pensioners next year, with savings potentially growing to almost £300 annually by the end of the next parliamentary term.
£2.4 Billion
The proposed policy is projected to cost £2.4 billion annually by the 2029-30 fiscal year. The Conservatives plan to fund this initiative through their existing strategy to enhance tax collection and combat tax evasion and avoidance, aiming to generate an additional £6 billion per year.
“We Are on the Side of Pensioners”
At the launch of the new policy, Sunak stated, “This bold action demonstrates we are on the side of pensioners. The alternative is Labour dragging everyone in receipt of the full state pension into income tax for the first time in history.”
Bruising Campaign Launch
However, opposition parties have criticised the proposal as a blatant attempt to regain lost support following a bruising election campaign launch for the Conservatives.
“Why Would Anyone Believe the Tories?”
Jonathan Ashworth, Labour’s shadow paymaster general, asked, “Why would anyone believe the Tories and Rishi Sunak on tax after leaving the country with the highest tax burden in 70 years?”
“Another Desperate Move”
He continued, “This is just another desperate move from a chaotic Tory party torching any remaining facade of its claims to economic credibility.”
“Unfair Tax Hikes”
Treasury spokeswoman for the Liberal Democrats Sarah Olney stated, “The Conservative Party has hammered pensioners with years of unfair tax hikes and broken their word on the triple lock.”
“Empty Promise”
She continued, “People won’t be fooled by yet another empty promise from Rishi Sunak after this record of failure.
Impact on Older Citizens
While the politicians argued back and forth over their plans, charities and advocacy groups representing pensioners, have voiced concerns about the potential impact of frozen income tax thresholds on older citizens.
Increased Anxiety
Reports from organisations like Age UK and Independent Age indicate increased anxiety among pensioners about being drawn into the tax net.
Unexpected Tax Bill
The new policy aims to alleviate these fears by ensuring that the state pension remains below the tax-free threshold, thus protecting pensioners from a large and potentially unexpected tax bill.
Calculated Effort
As the general election fast approaches, the “Triple Lock Plus”, along with the recently announced return of national service for 18 and 19-year-olds, represents a calculated effort by the Conservative party to restore confidence in their party among older voters.
Key Demographic
With those of pension age representing a key demographic, who usually regularly vote and vote Conservative, the “Triple Lock Plus” is a massive carrot to a section of the population the Conservatives desperately need if they are to overcome Labour’s commanding lead in the polls.
Traditional Support Base
Though the “Triple Lock Plus” is a significant offering to the so-called “grey vote”, it remains to be seen if this strategy will succeed in reversing current polling trends and allow the Conservatives to regain votes in their traditional support base.
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Featured Image Credit: Shutterstock / Alessia Pierdomenico.