Chancellor Jeremy Hunt Announces 'Pensions Tax Guarantee' to Save Pensioners Thousands

Chancellor Jeremy Hunt has unveiled the 'Pensions Tax Guarantee', which promises to protect pensions from new taxes and prevent increases in existing ones, potentially saving pensioners significant amounts. The announcement on June 2, 2024, highlights key measures like maintaining the 25 percent tax-free lump sum and preserving tax relief on contributions, while criticising Labour's possible reintroduction of the lifetime allowance and a 'Retirement Tax' on state pensions.

Chancellor Jeremy Hunt has announced the "Pensions Tax Guarantee" as a commitment from the Conservative Party to avoid new taxes on pensions and not increase existing ones, potentially saving pensioners thousands. The announcement, made on June 2, 2024, emphasizes maintaining the 25 percent tax-free lump sum, preserving tax relief on contributions, and ensuring national insurance does not extend to employer contributions.

Hunt criticized Labour leader Keir Starmer, suggesting Labour might reintroduce the lifetime allowance and a "Retirement Tax" on state pensions, similar to Gordon Brown's 1997 abolition of the dividend tax credit. The Conservatives are also reaffirming their commitment to the "Triple Lock" on state pensions, which ensures pension payouts increase with the highest of inflation, wage growth, or 2.5 percent.

Hunt highlighted the Conservative Party's past actions, such as increasing the state pension by £3,700 and lifting nearly a quarter of a million pensioners out of poverty, as evidence of their support for pensioners. He expressed concerns that Labour might impose "back-door taxes" to address fiscal deficits, urging pensioners to trust the Conservative Party's track record.