New State Pension and Tax Cuts to help more than half of Tamworth

Christopher Pincher, MP for Tamworth, has welcomed the biggest reform of the state pension since it was created more than a century ago, alongside a major package of reforms to tax, pensions and savings to help workers, which came into effect yesterday.

From 6th April 2016, eligible people in Tamworth who reach retirement age will receive the new State Pension, with the full rate set at £155.65 per week, or over £8,000 a year.

The new State Pension particularly benefits women reaching pension age over the next decade.  In the past, many were unable to build much of the previous earnings-related additional State Pension, from now on, everyone will build up the new State Pension in the same way.

Over 75 per cent of women and over 70 per cent of men will gain in the first 15 years of the new State Pension, and by 2030 over three million women stand to gain an average of over £550 extra per year as a result of these changes – that is more than an extra £10.50 every week.

The new pension is among a number of reforms to taxes, National Insurance allowances and savings that came into effect yesterday to back hard work, support savers and ensure economic security at every stage of life.  This includes a new personal savings allowance that means most people will be able to earn up to £1,000 interest a year on their savings without paying tax.  Over 18 million are set to benefit, with nearly 17 million taken out of savings tax altogether.

The tax-free personal allowance also increases from £10,600 to £11,000, giving an £80 tax cut to a typical taxpayer in Tamworth while the higher rate threshold rises to £43,000, delivering on the Conservatives commitment that working people will keep more of the money they earn.

An estimated 1,089 low-earners in Tamworth will be taken out of paying income tax altogether, while a massive 42,044 people in the constituency will see their income tax cut.  That is nearly 60% of all voters in Tamworth!

Mr Pincher commented, “We are committed to supporting people at every stage of their life, which means helping hardworking people keep more of the money they earn and providing dignity and security in retirement, especially women who have lost out before.

“The new State Pension will provide clarity and confidence for people across Tamworth about what income they will get from the state in their retirement while helping those who have historically lost out under the old system.

“It is also very good news that getting on for two thirds of people in Tamworth will receive an income tax cut today and over one thousand low-earners will be taken out of income tax altogether as we continue to back people who are working hard, saving hard, and doing the right thing.  The Conservative Government is delivering on its election promise to help workers and families keep more of their own money to spend or save as they think best.”