Has Rishi Sunak forgotten his Spring Budget in 2021? And his Chancellor Jeremy Hunt's Autumn Statement in 2022?
While he was Chancellor, the Prime Minister froze the income tax thresholds until April 2026. Then Hunt extended the freeze until 2028.
Often dubbed as a stealth tax, their move to not raise these tax bands each year meant the Government could raise more money from taxpayers, but they haven't had to announce an increase to tax rates.
This decision, known as fiscal drag, means more and more people are dragged into paying tax or higher rates of tax amid inflation and wage increases.
People, including pensioners, are already being affected.
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Rishi Sunak has promised to bring in a 'triple lock plus' scheme to stop pensioners from being taxed on their state pension
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It seems Rishi Sunak is aware of this, which is why this week he pledged to bring in the triple lock 'plus'.
As he continues his campaign ahead of the 2024 General Election, the Prime Minister promised to increase the income tax personal allowance for pensioners.
He branded it "a tax cut worth around £100", but it would simply mean millions of pensioners don't have to pay the extra £95 they're expected to in 2025/26 under the current policy.
"Alternatively, Labour would drag everyone in receipt of the full state pension into income tax for the first time," Sunak declared.
Under Labour “pensioners will be paying tax,” he said. “That’s a clear choice on offer.”
That's a bit rich. Sunak neglected to point out that he and his party had implemented the ongoing freeze, which is dragging these very pensioners into higher income tax bands.
Thanks to the tax freeze, by 2028, almost four million more people will be expected to pay income tax, according to the Office for Budget Responsibility (OBR).
There will be three million more individuals who have moved to the higher rate, and 400,000 more to the additional rate.
This is already having an effect on pensioners. State pension triple lock rises combined with the holding of the tax-free personal allowance at £12,570 mean pensioners are paying more tax.
With the tax threshold frozen and state pensions rising by 10.1 per cent and then 8.5 per cent between 2022 and 2024, growing numbers are finding themselves liable for tax purely on the basis of their state pension, too.
Those who only get the state pension could face a surprise tax bill in the future, known as "simple assessment".
Former pensions minister and LCP partner Steve Webb explained: "Because the state pension is paid in full (before the deduction of any tax) this means that the pensioner will owe some tax at the end of the year.
"This would affect anyone whose total taxable income is over the tax threshold (currently £12,570) and who doesn’t have a company pension or other pension income where tax is collected through use of a tax code."
If the money can't be collected via tax code, HMRC can send a "simple assessment" in the post or via the online personal tax account.
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I think the personal allowance should be raised, but the "triple lock plus" pledge comes far too late.
Why didn't the Conservatives back it sooner? Like in the 2023 Autumn Statement? Or the 2024 Spring Budget?
I think Sunak is taking the public for fools by criticising Labour for "dragging everyone in receipt of the full state pension into income tax for the first time".
His policy has done exactly that. And now he wants pensioners' votes, he's trying to backtrack on his own policy by not acknowledging he brought it in.
This triple lock plus pledge just reeks of the panic you face at 10pm at night, when you realise your dog has eaten your homework.
