UPDATE: Chancellor Rachel Reeves is set to unveil a groundbreaking announcement in her budget this Wednesday, impacting 13 million pensioners across the UK. Starting next April, those receiving the full new state pension will see an increase of over £550 per year, marking a significant above-inflation rise.
The expected adjustment will elevate the weekly rate of the full new state pension to just over £240, delivering an additional £120 compared to if it had been solely adjusted for inflation. Meanwhile, the full basic state pension is projected to rise by approximately £440 annually.
Chancellor Reeves emphasized her commitment to supporting pensioners, stating, “Whether it’s our commitment to the triple lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve.” This statement underscores the urgency of the situation as the government grapples with the ongoing cost of living crisis.
The triple lock policy guarantees that the state pension rises each year by the highest of inflation, average earnings growth, or 2.5%. As part of this announcement, Reeves is also anticipated to address other pressing issues, including the potential reversal of the two-child benefit cap and new measures to assist with rising energy bills.
Writing in major publications like the Mirror and the Sunday Times, the Chancellor acknowledged that soaring prices “hit ordinary families most” and recognized that the economy “feels stuck” for too many people. She stated, “That’s why in my budget on Wednesday, I will take action to grip the cost of living.”
Additionally, reports indicate that Reeves may propose several tax reforms, including:
– Freezing income tax thresholds for an extra two years, which could push more individuals into higher tax brackets.
– Reducing the benefits of salary sacrifice schemes, particularly for pension contributions.
– Implementing higher taxes on the most expensive properties in England, including a surcharge on high-value homes.
– Introducing a pay-per-mile tax on electric vehicles, addressing the tax gap from declining petrol duty as more drivers transition to greener options.
Stay tuned for live updates on the budget announcement, as Chancellor Reeves is scheduled to address the House of Commons on November 26 at 12:30 PM. This critical budget is expected to shape the financial landscape for millions of pensioners and families across the nation, making it an event not to be missed.
With these developments, the urgency around the budget announcement cannot be overstated; it promises to provide immediate relief and long-term solutions for many struggling with the rising cost of living.
