Ministers face fight over cuts for pensioners

Friday 04 December 2015

Ministerial plans to cut extra tax allowances for pensioners are going to face a challenge – with one backbencher fighting to keep hold of extra money for the over 65s.

Deputy Carolyn Labey says that proposals to start phasing out the allowance – worth £3,300 per year to an elderly couple - is an attack on “Middle Jersey”.

She has referred to the recent report stating that one-in-three pensioners is already living on a “relative low income” and has accused ministers of trying to sneak the effective tax rise in through the back door saying it “is not right and should not be tolerated”.

Instead, she says that the tax allowances should be increased by inflation – currently running at 0.9% - to maintain the benefit to the elderly.

Deputy Labey’s proposition states: “ Pensioners who have worked, been prudent and saved for their retirement should be given some certainty by this Government, as to their taxation and how those liabilities will be calculated, because in most cases, once they reach age 65+ their own income is certain.

“Let us not forget the people who I am referring to in my amendment are those who could be described as ‘Middle Jersey’.

“Actually they are pensioners who are on low-to-middle incomes. And this Government is targeting them again as a means to make the budget balance.

“I am arguing not to single the pensioners out – again – and not to freeze their allowances, but instead to increase them, like everyone else’s, by 0.9%.”