Pensioner tax burden soars as larger share of over 65s pay income tax than workers
Over half of pensioners now pay income tax.
More pensioners are being dragged into paying income tax with a larger share of over 65s now paying the levy than working age Britons.
A report from the Institute for Fiscal Studies found the share of over 65s paying income tax "has risen rapidly" from 48 percent in 2010-2011 to 65 percent in 2023-24.
The group said: "For the first time ever, the share of over-65s paying income tax is higher than the share of working-age adults paying income tax (63 percent).
"This trend is due to the combined effect of relatively strong income growth among pensioners and the phasing out of the (previously higher) pensioner personal allowance."
The report also noted that the overall increase in income taxpayers is "driven entirely" by the rise in pensioners paying the tax.
The topic of taxes for pensioners has been under discussion in the build up to the General Election.
The Conservatives have set out plans in their manifesto for the personal allowance to increase for pensioners in line with the triple lock.
Their manifesto states: "From April 2025, we will increase the personal allowance for pensioners by introducing a new age-related personal allowance.
Don't miss...
Nigel Farage's Reform UK unveils huge inheritance tax cut plan [TAXES]
National Insurance will be cut by 2p if Tories win, confirms Rishi Sunak [POLICY]
Pay surges by six percent as job vacancies shrink by 12,000 places [JOBS]
"This is a tax cut of around £100 for eight million pensioners each year - rising to £725 a year by the end of the Parliament."
In their bid to stay in office, the Conservatives also said they will not introduce any new taxes on pensions, will keep the 25 percent tax-free lump sum and will maintain tax relief on pension contributions at the marginal rate.
Richard Tice said the policy would mean Britons taking home an extra £1,500 in pay each year, almost £30 a week.
He said in announcing the proposed tax change: "Crucially that frees up seven million people from paying income tax at all, which just proves that Reform UK is the party of the workers."
George Galloway's Workers Party of Britain has gone further, calling for the personal allowance to increase to £21,200.
For the latest personal finance news, follow us on Twitter at @ExpressMoney_.
