It has only been 16 months since Rachel Reeves took over the helm as chancellor but she has already made life difficult for millions of pensioners. <\/p>\n
It began just three weeks into her new role when Reeves announced that the winter fuel payment would no longer be a universal benefit for those above the state pension age, meaning that millions of pensioners would no longer get the extra \u00a3200\u2013\u00a3300 to help with their energy bills. <\/p>\n
And while the government ended up with a rather embarrassing half-baked U-turn less than a year later, many pensioners continue to miss out. <\/p>\n
\u2022 Winter fuel payment U-turn: bad news for single pensioners<\/a><\/p>\n There was more bad news in the budget last year when Reeves said that most pensions would become part of an estate for inheritance tax purposes from April 2027, leaving many thoughtfully-laid financial plans in tatters. <\/p>\n Reeves also chose not to end the freeze on income tax thresholds. The tax-free personal allowance (the amount you can earn before paying any tax) has been \u00a312,570 since April 2021 and is set to remain frozen until April 2028. This has meant that, as the state pension has increased, more pensioners have found themselves having to pay income tax for the first time. <\/p>\n With inflation still nearly twice as high as the Bank of England\u2019s 2 per cent target, pensioners continue to be squeezed from all angles. And there is no let up. It has become increasingly clear that this is the group who will bear the brunt of the forthcoming tax raid. <\/p>\n In her speech on Tuesday, Reeves made it pretty obvious that she is preparing another round of tax rises<\/a>, despite last year promising that she wouldn\u2019t come back for more.<\/p>\n The chancellor is considering plans for a 2p rise in income tax and a 2p cut in national insurance. Most people over state pension age are no longer paying national insurance, so this proposal would hurt millions who pay income tax on their pensions.<\/p>\n If this happened the average pensioner would be hundreds of pounds worse off each year, according to LCP, a pensions consultancy. The change would hit the 9 million pensioners who already pay tax.<\/p>\n Older homeowners, living in expensive properties, must also brace themselves for a potential increase of thousands of pounds on their council tax bill via a rumoured mansion tax<\/a> \u2014 an annual 1 per cent tax on the portion of a property\u2019s value above \u00a32 million. This would affect about 150,000 homeowners. On a \u00a32.5 million property the tax would be \u00a35,000 a year.<\/p>\n The chancellor is also said to be considering proposals to double council tax on properties in the top two valuation bands. While pensioners are widely known for being asset rich they are also cash poor, sparking concern that a substantial rise in council tax could mean some are forced out of their homes. <\/p>\n And to top it off, Reeves is again considering cutting the cash Isa allowance for savers. Despite shelving plans to reduce the \u00a320,000 allowance earlier this year, it is now suggested that it is back on the agenda, with a potential reduction to \u00a310,000. <\/p>\n