Pensoners not penalised for higher than £10,000 tax threshold blunder.

Not cutting the basic tax threshold for all pensioners may not be popular with the majority of the population, but having increased the threshold beyond the target of £ 10,000 early, it was the right not to claw the payments back.

The Coaltion Government had always intended to raise the basic allowance for all citizens in the lifetime of this parliament to £ 10,000.

In recognition of the plight of pensioners we were able to fasttrack the increase in allowances for that group, but unfortunately we overshot and increased their allowance to £10,500.

Having given that threshold it would be unfair to reduce it to £ 10,000 and therefore we will maintain that higher threshold for pensioners at £ 10,500, giving them an additional tax break of £ 500 above the rest of the population.

We accept that this is not fair on all other low-earning groups but we are not prepared as a government to place out pensioners in a position whereby they lose out as a result of a mistake in the previous budgets.


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