PENSIONERS have been singled out as the biggest losers from the Budget losing an average of £1,000 each, analysis shows.
Jeremy Hunt’s Budget on Wednesday left eight million pensions with a £8 billion blow, according to experts at the Resolution Foundation.
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The retirees faced the financial hit to their incomes following a six-year freeze on income tax thresholds, they said.
It risks Rishi Sunak losing support within the age cohort just months away from the election expected at the end of the year.
The Budget highlighted a move from giveaways for the elderly in favour of the young and the poor, according to the organisation.
Their analysis showed those aged over 66 will see an average loss of £770 while those aged 25-35 years old will receive a boost of £620 per household.
Torsten Bell, chief executive of the think tank, said: “The biggest group of losers are pensioners, who face an £8 billion collective hit.
He added: “Looking at all policy changes announced this parliament reinforces the sense that the Government has reversed course from the approach that dominated during the 2010s.
Analysis from the think tank added: “This time it is those aged over 65 and on the highest incomes who are set to lose most.”
“This approach is justified with tax cuts focused on working-age employees and the self-employed, who currently pay higher rates of tax than pensioners or landlords, but it is a staggering turnaround from the approach of Conservative governments since 2010, who have generally focused support on pensioners.”
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Lib Dem Treasury spokesperson Sarah Olney said: “This Conservative government has shown their true colours, pensioners are not their priority.
“They would rather cut taxes for the big banks than look after those who have given so much for so long to our society.”
But the Chancellor swiped back at criticism today as he told Sky News: “We’ve done an enormous amount for pensioners. This government introduced the triple lock … we have really prioritised pensioners.”
The elderly have benefited from the triple lock that sees their state pension rise in line with the highest of inflation, average wage growth or 2.5 per cent each April.
