‘Tax burden has been shifted to those who can least afford it’

Disabled pensioners are being dragged into paying income tax for the first time as a result of a freeze on tax thresholds.

The personal allowance threshold on tax-free income has remained frozen at £12,570 since March 2021 and is set to remain at the same level until at least 2027-28.

Labour has refused to commit to unfreezing the threshold if it wins power.

The state pension is set to increase by 8.5 per cent in April following a succession of rises under the triple lock, which will mean that pensioners receive a full state pension of more than £11,500 from April.

Age UK has warned the policies are pushing a growing number of pensioners who receive other allowances, such as disabilities benefits, into paying income tax for the first time since retiring.

Kim Parker, 62, said her mother Muriel, 84, last week received a letter notifying her that her tax code had changed because her pension now exceeds the tax-free personal allowance.

This means the former department store caterer will have to pay income tax for the first time in 15 years.

“It was a bit of a shock for her to have to start paying tax again,” her daughter said,

Ms Parker, who lives with her daughter in Branksome, Dorset, receives a small annuity from her late husband’s private pension as well as an attendance allowance, paid to pensioners with severe disabilities who require care.

Her daughter said: “She really doesn’t earn very much.”

The full-time carer, who works as a script analyst, has not been able to live at her home in Paris for more than two years due to caring for her elderly mother.

“I came home for Christmas in 2021 and my dad was diagnosed with brain cancer and he died three months later. Then I took over care of my mum when she was still a bit mobile,” she said.

“I just feel that not putting the tax threshold up, but giving tax cuts is socially regressive.

“It’s shifting the burden of taxation from those who can afford it to those who can least afford it.”