An extra one million pensioners to be hit by Labour’s stealth taxes unless Chancellor acts

EMBARGO: Immediate Release

An extra one million pensioners are to be dragged into paying income tax over the next four years due to Labour’s stealth taxes, the Office for Budgetary Responsibility forecasts published as part of today’s Spring Statement said.

The OBR found that an additional 600,000 people on the state pension will be brought into paying income tax by 2026-27, rising to an extra one million by 2030-31.

The Liberal Democrats said the Chancellor must come back before Parliament immediately and set out how pensioners will be protected from these stealth taxes.

Liberal Democrat Treasury Spokesperson Daisy Cooper said:

“Buried in the small print of today’s Spring Statement is a shock stealth grab hitting another one million pensioners.

“For poorer pensioners, every penny counts and these unfair tax hikes could be the final straw.

“Rachel Reeves must urgently explain how she will protect older poorer pensioners from this stealth tax squeeze.

“Pensioners have worked hard all their lives, paid into the system and played by the rules. Poorer pensioners should not be made to pay the price for this Labour government’s economic failure.”

ENDS

Notes to Editor:

See OBR economic and fiscal outlook, page 47
https://assets.publishing.service.gov.uk/media/69a6d7b62e1f4fbda4252208/economic-and-fiscal-outlook-march-2026-web-accessible.pdf