Pensioners could be £1,000 worse off from 'tax bombshell' hidden in Budget

Pensioners will be the biggest losers from Jeremy Hunt's Spring Budget, with many facing a £1,000 reduction in their income because of Tory tax plans.

Economists have said that older people have come off worst from Mr Hunt's budget, criticising the hidden "disgraceful £8 billion pensioner tax bombshell" in the small print. The Chancellor plans to cut National Insurance by 2p next month in a £10 million attempt to appeal to voters and improve the Tories' poor poll ratings.

However, the elderly will pay for these plans, experts have said. The Resolution Foundation revealed that all 8 million pensioners will see an average increase of £1,000 in their taxes by 2027/28 because of frozen income tax thresholds.

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Pensioners won't benefit from the Chancellor's tax cuts as they don't pay National Insurance and they're being affected by sneaky tax raids on income tax.

Income tax thresholds have been frozen since 2021, dragging more people into higher tax brackets because of inflation. Older people must still pay tax on any income over the personal allowance, including pensions, reports the Mirror.

The think tank stated that by 2027/28, pensioners paying the basic rate of income tax will be around £700 worse off, compared to what they would have been without the freeze. The average pensioner who pays tax will lose around £1,000. In total, the policy will have increased taxes for pensioners by approximately £8 billion.

Chief executive Torsten Bell said: "The biggest group of losers are pensioners, who face an £8 billion collective hit. Looking at all policy changes announced