Pensioners could be handed a £275-a-year tax cut boost under Conservative plans

A stunning election pledge to boost the state pension of millions if Rishi Sunak wins on July 4 has put clear blue water between the Tories and Labour.

In a direct appeal to older voters that places the opposition under pressure, the Prime Minister will hand pensioners a giant £100 tax cut next year by raising their personal allowance.

This will rise to almost £300-a-year by the end of the decade, he said.

Combined with the existing pensions Triple Lock, the new tax cut means some eight million pensioners will be significantly better-off in five years time.

Mr Sunak said: “I passionately believe that those who have worked hard all their lives should have peace of mind and security in retirement.

“Thanks to the Conservatives’ Triple Lock, pensions have risen by £900 this year and now we will cut their taxes by around £100 next year.

“This bold action demonstrates we are on the side of pensioners. The alternative is Labour dragging everyone in receipt of the full state pension into income tax for the first time in history.”

And Chancellor Jeremy Hunt told this newspaper the “bold” plan would be welcomed by Express readers who have worked hard and paid taxes all their lives.

“Ensuring pensioners can live in dignity after a lifetime of hard work goes to the core of my values as a Conservative,” he said.

“The triple lock has been nothing short of transformative for pensioners. This bold action will go even further to secure pensioners’ future.

“Labour have never been on the side of pensioners and have no plan to support them.”

Opposition leader Sir Keir Starmer has committed to keeping the Triple Lock pledge for at least five years.

But Mr Sunak hopes the bold tax cut will boost the Tory election campaign with the party trailing Labour in the polls.

It also marks another huge victory for the Daily Express which has campaigned tirelessly for the Triple Lock to be honoured.

The landmark scheme will see the personal allowance for pensioners - which is currently £12,570 - increased in line with the existing Triple Lock by introducing a new age-related allowance.

That means that for pensioners, both the State Pension and their tax-free allowance will always rise in line with the highest of earnings, wages or 2.5%.

By 2029/30 the personal allowance - which is the amount of income you do not have to pay tax on - will reach £14,450 under the plan.

It means some eight million pensioners will get a £95 tax cut next year, rising to £160 in 2026/27, £230 in 2027/28, £250 in 2028/29 and then £275 by 2029/30.

This comes alongside the Conservatives’ existing commitment to the Triple Lock, which on current forecasts will see the State Pension rise by £430 next April – and by almost £1,700 a year by the end of the Parliament.

Overall it means they will be £1952 better off by 2029/30.

The policy will cost £2.4 billion a year and be funded through the Conservatives’ previously announced plan to raise an extra £6 billion a year by the end of the next Parliament by clamping down on tax avoidance and evasion.

Mr Sunak said that under Labour’s plans all of the UK’s 12.6million full state pension recipients would be dragged into income tax for the first time.

Campaigners welcomed the announcement and said it could have a huge impact on how older people vote in the election.

Dennis Reed, director of Silver Voices, said: “The Triple Lock Plus initiative is a most welcome and surprise announcement by the Tories and kicks off the battle for the votes of older people in a very positive way.

“Labour must now respond. Silver Voices would prefer the freeze on tax thresholds to be lifted for lower paid workers as well, but there is a strong case for an age-related allowance because pensioners did not benefit from the national insurance cuts.”

Mr Reed, who played a major role in the campaign to protect the Triple Lock, warned all political parties there is more work to do to help pensioners.

“There are many more pension challenges to be addressed by all the political parties during the campaign, including the growing gap between the old and new state pensions and fair compensation for the WASPI women,” he said.

“Millions of older people still have to decide which way to vote this time, and our votes will be crucial in deciding the outcome”.

Pensions Secretary Mel Stride said: “Only a Conservative government can provide pensioners with the peace of mind in retirement they deserve.

“Labour’s record speaks for itself. The last Labour government completely failed pensioners, with a £118 billion pensions tax raid and an insulting 75p increase to the state pension.

“Sir Keir Starmer can pay lip service to supporting pensioners but we know it will always be the same old Labour, putting our pensioners at the back of the queue.”

In response, Jonathan Ashworth, Labour’s Shadow Paymaster General, said: “Why would anyone believe the Tories and Rishi Sunak on tax after they left the country with the highest tax burden in 70 years?

“This is just another desperate move from a chaotic Tory party torching any remaining facade of its claims to economic credibility.

“Not only have they promised to spend tens of billions of pounds since this campaign began, they also have a completely unfunded £46 billion policy to scrap national insurance that threatens the very basis of the state pension.

“Labour will protect the triple lock. But Rishi Sunak is planning to reward Britain’s pensioners for their loyalty by stabbing them in the back, just like he did to Boris Johnson and just like he has done to his own MPs.”