{"id":318998,"date":"2025-12-16T12:17:11","date_gmt":"2025-12-16T12:17:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/318998\/"},"modified":"2025-12-16T12:17:11","modified_gmt":"2025-12-16T12:17:11","slug":"labour-set-to-use-two-tier-dwp-state-pension-as-weapon-against-millions","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/318998\/","title":{"rendered":"Labour set to use ‘two-tier’ DWP state pension as weapon against millions"},"content":{"rendered":"

Chancellor Rachel Reeves has confirmed income tax thresholds would be frozen for three more years.\"ChancellorChancellor Rachel Reeves has confirmed income tax thresholds would be frozen for three more years.<\/p>\n

A two-tier state pension has become the Labour Party government’s latest weapon against workers, it has been warned. Labour Party<\/a> government Chancellor Rachel Reeves has confirmed income tax thresholds would be frozen for three more years.<\/p>\n

But at the same time, Ms Reeves announced that people on solely the old or new state pension would not pay tax this Parliament. The Chancellor later repeated the policy on ITV<\/a> News.<\/p>\n

The announcement sparked outrage at the Labour Government\u2019s creation of a \u201ctwo-tier\u2019 system that made some retirees more equal than others.<\/p>\n

READ MORE Blue Badge drivers issued 12-week warning and urged to act<\/a><\/p>\n

Conservative peer Lord Mackinlay said the \u201ctwo-tier taxation\u201d would leave people questioning why they ever saved into a pension. Helen Morrissey, of Hargreaves Lansdown, called it \u201cgrossly unfair\u201d on those who had.<\/p>\n

Lord Mackinlay, a Conservative peer and former MP, said: \u201cThe elegant solution would have been to give everyone in the country a personal [tax-free] allowance reflecting the basic state pension. It would have been easy and fair.<\/p>\n

\u201cBut no, this Government has decided to introduce yet another two-tier taxation for those who have worked hard all their life and been diligent. People will ask, what\u2019s the point in saving into a pension? Why did I bother?<\/p>\n

\u201cThis is where fiscal drag hits the road of reality for millions of taxpayers. This Labour Chancellor has created this.\u201d<\/p>\n

Hargreaves Lansdown\u2019s Helen Morrissey said the Chancellor\u2019s \u201crushed announcement\u201d would cause division and further confusion in an already complex system.<\/p>\n

She said: \u201cIt will be seen as grossly unfair for those pensioners who have income tax taken because they have contributed to a workplace or private pension.<\/p>\n

\u201cSome of these pensioners may have incomes that are only fractionally higher and rightly feel aggrieved.\u201d<\/p>\n

The Telegraph’s Rob White added: “By handing tax breaks to just some retirees, the Chancellor has opened a divide that will grow and grow”<\/p>\n","protected":false},"excerpt":{"rendered":"Chancellor Rachel Reeves has confirmed income tax thresholds would be frozen for three more years.Chancellor Rachel Reeves has…\n","protected":false},"author":2,"featured_media":318999,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,2215,4176,4174,4175,56,54,55],"class_list":{"0":"post-318998","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dwp","10":"tag-finance","11":"tag-personal-finance","12":"tag-personalfinance","13":"tag-uk","14":"tag-united-kingdom","15":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/318998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=318998"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/318998\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/318999"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=318998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=318998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=318998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}