Thousands of residents in Boston and Skegness will receive a tax cut today - with hundreds of others out of tax altogether.
MP Matt Warman has welcomed the biggest reform of the state pension since it was created more than a century ago.
We are committed to supporting people at every stage of their life, which means helping hardworking people keep more of the money they earn and providing dignity and security in retirement.Matt warman, MP for Boston and Skegness
In what he describes as “dignity for pensioners”, the reform will help 48,000 people in Boston and Skegness, and see 1,200 not having to pay any tax.
From today, eligible people in Boston and Skegness who reach retirement age will receive the new State Pension, with the full rate set at £155.65 per week, or over £8,000 a year.
The new State Pension particularly benefits women reaching pension age over the next decade. In the past, many were unable to build much of the previous earnings-related additional State Pension, but from now on, everyone will build up the new State Pension in the same way.
Over 75 per cent of women and over 70 per cent of men will gain in the first 15 years of the new State Pension, and by 2030 over three million women stand to gain an average of over £550 extra per year as a result of these changes.
The new pension is among a number of reforms to taxes, National Insurance allowances and savings coming into effect today to back workers, support savers and ensure economic security at every stage of life.
This includes a new personal savings allowance that means most people will be able to earn up to £1,000 interest a year on their savings without paying tax. Over 18 million are set to benefit, with nearly 17 million taken out of savings tax altogether.
The tax free personal allowance also increases from £10,600 to £11,000, giving an £80 tax cut to a typical taxpayer in Boston and Skegness, while the higher rate threshold rises to £43,000, delivering on the Conservatives commitment that working people will keep more of the money they earn. An estimated 1,187 low-earners in Boston and Skegness will be taken out of paying income tax altogether today, while 47,945 people across the constituency will see their income tax cut.
Mr Warman said: “We are committed to supporting people at every stage of their life, which means helping hardworking people keep more of the money they earn and providing dignity and security in retirement.
“The new State Pension will provide clarity and confidence for people across Boston and Skegness about what income they will get from the state in their retirement, while helping those who have historically lost out under the old system.
“It’s also great news that 47,945 people in the constituency will receive an income tax cut today and over a thousand low-earners will be taken out of income tax altogether as we continue to back people who are working and saving hard.”