IN his 'Benchmark' column in the Okehampton Times (March 29) Mr Stride MP passed comment on the recent Budget.
Noticeable by its absence was any comment on the much discussed changes to age-related allowances, the so called 'Granny Tax'. In an interview on the BBC Spotlight news Mr Stride sought to justify it by stating that the government had increased the state pension by some £5 per week and had retained the winter fuel allowance.
What Mr Stride failed to point out was that the increase in pension he boasts of was less than what it would have been if this government had not changed the way it was calculated, linking any increase to the Consumer Price Index rather than the Retail Price Index used previously. The Retail Price Index is invariably higher than the Consumer Price Index. He also failed to mention that this government reduced the winter fuel payment by 20% (£50).
According to HMRC the changes to age-related tax allowances will raise £1-billion by 2015, save the government £360-million in 2013-14 and bring a further 230,000 pensioners into the income tax system.
People who reach the age of 65 shortly before April 2013 will receive an age-related allowance of £10,500 but anyone who reaches 65 after April 2013 will only receive £9,205. This is the biggest tax raising change in the budget and is done at the expense of 40% of all pensioners
I suppose it is naïve to expect Mr Stride to try to justify or even comment on this revenue raising burden imposed on pensioners. As a parliamentary private secretary he is on the Government 'payroll' vote and, as the old adage goes, he who pays the piper calls the tune.
Charles Letchford
Okehampton





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