State pensioners are being harmed by the Labour Party government's decision to freeze income tax, according to Andy Burnham. The Labour candidate for the Makerfield byelection has stated he would revisit the freeze on income tax bands.
Current Tax Bands and Personal Allowance
Chancellor Rachel Reeves confirmed last year that the current tax bands will remain in place until April 2031. The standard Personal Allowance is £12,570, which is the amount of income you can earn tax-free each year. This threshold is maintained at £12,570 for the 2026 to 2027 tax year.
If you have the standard Personal Allowance, your taxable income is typically taxed across the following bands (note that these bands differ in Scotland):
- Personal Allowance: Up to £12,570 (0% Tax Rate)
- Basic rate: £12,571 to £50,270 (20% Tax Rate)
- Higher rate: £50,271 to £125,140 (40% Tax Rate)
- Additional rate: Over £125,140 (45% Tax Rate)
Burnham's Comments on Doorsteps
Mr Burnham said: “What I have heard on doorsteps is pensioners saying the freezing of the personal allowance has dragged more and more pensioners into tax. So, I do think you need to look at that issue as well.” He added that pensioners feel “what they have got through one way, they are saying now that it’s being taken away in another”.
Triple Lock Commitment
Mr Burnham also committed to keeping the Department for Work and Pensions (DWP) pension triple lock in place for the remainder of the current parliament, in line with Labour’s 2024 manifesto. On the triple lock, he said: “I think, given where we are with trust in politics, and particularly following the debate about winter fuel – which still comes up on doorsteps a lot here in Makerfield – I think you’ve got to stick to the manifesto commitment.”
He stated it would be “very damaging” to tear up the pledge at this stage, but did not commit to maintaining the policy after future elections.
