Budget 2012 – bad news for pensioners?

Income tax
Income tax (Photo credit: Alan Cleaver)

It’s only a few hours since George Osborne gave details of his 2012 UK Budget. But reactions from various organisations are coming thick and fast already! The National Federation of Occupational Pensioners (NFOP) is one of the first – saying that they believe the Budget is bad for pensioners on lower incomes, as the freeze on age-related tax allowances will affect them more than more well-off pensioners.

Mature Times reports

“Roger Turner, the General Secretary of the N.F.O.P, said that the move will cause many lower income pensioners to be several hundred pounds a year worse off, at a time when soaring energy prices and rising costs of living are already crippling meager budgets.

Mr Turner said: ‘Freezing the Allowance means that pensioners over 65 with incomes below £28,400 will get no benefit from the increase in the Personal Allowance to £9,205 missing out on up to £220 per year, whereas pensioners with incomes over £28,400 will get full benefit. How can this be said to be fair or just, whilst at the same time the Government raises fuel duty and reduces the top rate of tax?’”