Fears pensioners getting £200 per week could pay extra £738 a year in tax

Jeremy Hunt has accused his political opponents of creating fear among the elderly with 'fake news' stories about the proposed abolishment of National Insurance, which Labour's Rachel Reeves has warned could cost some pensioners £738 per year in additional tax.

In his recent spring Budget announcement, the Chancellor disclosed a 2p reduction in National Insurance and clarified a "long-term ambition" to entirely eliminate it. But, speaking in the House of Commons, Labour's Shadow Chancellor warned that this would create a huge hole in the UK's finances.

Rachel Reeves, contested the Government's proposal, asserting that the policy equates to a £46 billion deficit and amounts to "planning to pick pensioners pockets". During this week's Treasury discussions on Tuesday, Mr Hunt categorically denied any plans to merge income tax and National Insurance to sustain his objective.

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Conversely, Prime Minister Rishi Sunak had previously reassured that there would be no cuts to the state pension in light of these costs.

Engaging in parliamentary debates within the Commons, Ms Reeves queried: "At the Budget, the Chancellor set out his intention to abolish National Insurance, a £46 billion annual commitment with no clear plan as to how it would be paid for.

"One way to do it would be to merge income tax and National Insurance, does the Chancellor agree with analysis from the House of Commons library, which shows merging these two would increase income tax by 8p in the pounds? ".

To which Mr Hunt retorted: "Which is why it is not our policy."

In response, Ms Reeves alluded to an apparent contradiction, stating: "That is strange because the