TAX CUTS FOR RICH, MORE PAIN FOR POOR

Pension giveaway for wealthy | £67 energy payout scrapped

- ANDREW QUINN

THE Tories announced a "huge tax giveaway" for the richest one per cent in the Budget while taking away a lifeline £67-a-month energy payment.

Chancellor Jeremy Hunt announced a surprise tax cut on pension allowances in a move described by Labour leader Keir Starmer as a "permanent tax cut" for the wealthy.

In the same speech, Hunt refused to extend the Energy Bill Support Scheme, which has provided households with cash for energy bills over the last six months.

In a further attack on poor households, Hunt said "sanctions will be applied more rigorously" on Universal Credit claimants.

The Chancellor abolished the lifetime pension allowance in an effort to encourage people especially ageing doctors - to remain in work longer.

But the move only helps those with pension pots of more than £1million.

The lifetime allowance currently stands at £1.07million, with savers incurring tax after that personal pension pot threshold has been exceeded.

But in a surprise giveaway to the rich, the Chancellor yesterday abolished the lifetime allowance on tax-free pensions savings altogether.

Hunt also revealed that the annual allowance rate for pensions will be increased by 50 per cent from £40,000 to £60,000.

Starmer slammed the plan in the House of Commons after Hunt's statement, saying: "We needed a fix for doctors but the announcement today is a huge giveaway to some of the very wealthiest.

"The only permanent tax cut in the Budget is for the richest one per cent. How can that possibly be a priority for this Government?