From today (6 April), people who reach retirement age will receive the new State Pension, with the full rate set at £155.65 per week. Over 75% of women and over 70% of men will benefit in the first 15 years of the new State Pension, and by 2030 more than three million women stand to gain an average of approximately £550 extra per year as a result of these changes.
The tax free personal allowance also increases from £10,600 to £11,000, giving an £80 tax cut to a typical taxpayer, while the higher rate threshold rises to £43,000. Additionally, a new personal savings allowance means most people will be able to earn up to £1,000 interest a year on their savings without paying tax. Over 18 million people are set to benefit from this, with nearly 17 million taken out of savings tax altogether.
Mr Evennett commented: “We are committed to providing people with economic security at every stage of their life. The new State Pension provides clarity and confidence for people about what income they will get from the state in their retirement, whilst helping those who have historically lost out under the old system.
“Also, in Bexleyheath and Crayford alone, almost 41,000 people will receive a tax cut today and over 750 people will be taken out of income tax altogether, as we continue to help people keep more of their hard earned money.”