State pension could ‘end’ due to Jeremy Hunt’s ‘unfunded’ National Insurance proposal
The Labour Party is hitting back at Chancellor Jeremy Hunt over the Tories’s record in Government when it comes to pensioners.
Sir Keir Starmer’s party claims the Conservatives’ rumoured plans to scrap National Insurance could see the “end of the state pension as we know it”.
Earlier today, Hunt slammed Labour for “scaring pensioners” and questioned the legitimacy of the Official Opposition’s fiscal policies in a speech at Westminster.
Describing the party’s plan for the economy as a “myth”, the Chancellor went on to claim Labour’s tax proposals as a “lie”.
Hunt claimed: “I don’t make any bones about it. It is fake news and it is an absolute disgrace to try and win this election by scaring pensioners about a policy that is not true.
“And when it comes to taxes on pensioners, I would just say to every pensioner in the country – which is the party in British politics that wants to bring down the taxes that you and everyone else pays, and which is the party we know will increase them?”
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Labour have claimed a proposal floated by Chancellor Jeremy Hunt could see the “end of the state pension as we know it”
GETTY/PA
During this year’s Spring Budget, the Chancellor of the Exchequer cited his long-term ambition to scrap National Insurance altogether.
Money from the levy and general taxation is used to pay for state pension payments once Britons reach retirement age.
Furthermore, taxpayers need 35 years of National Insurance contributions under their belt to qualify for the full new state pension.
According to the Labour Party, such an endeavour would amount to a “£45billion underfunded tax cut”.
After Hunt’s speech, a Labour spokesperson said: “This is another desperate attempt by the Tories to deflect from their £46billion unfunded tax plan that could lead to higher borrowing, higher taxes on pensioners or the end of the state pension as we know it.
“All of Labour’s policies are fully costed and fully funded. Unlike the Conservatives, who crashed the economy, Labour will never play fast and loose with the public finances.
“Jeremy Hunt would be better spent getting Rishi Sunak to confirm the date of the election, rather than putting out any more of these dodgy dossiers.”
Earlier this week, Starmer unveiled his six pledges to voters ahead of the yet-to-be-announced General Election.
Among these “first steps” to returning to office, Labour has promised to enforce tougher spending rules to ensure the economy remains stable.
Despite promising to keep the triple and not raise the state pension age, the opposition party’s pensioner policies have yet to be rolled out.
LATEST DEVELOPMENTS:
Hunt cited scrapping National Insurance all together as being a long-term goal
GETTY/PA
In December 2023, the Institute of Fiscal Studies (IFS) highlighted the challenges facing the state pension in the years to come.
These included a rising ageing population and the long-term viability of keeping the triple lock on the public purse.
The think tank noted that raising the state pension age to offset costs will likely hit lower-income households the most.
As well as this, the IFS cited the growing pessimism around the state pension among the population.
