Latest news with #TaxPayers'Alliance
Daily Mirror
26-05-2025
- Business
- Daily Mirror
DWP state pensioners issued £3,000 tax warning with thousands set to be affected
Finance expert Shimeon Lee, a policy analyst at the TaxPayers' Alliance, said the Triple Lock and frozen tax thresholds could see many more older Brits face a "nasty surprise tax" over the coming year A warning has been issued to state pensioners as more risk paying tax on their pension pots after April's £470 a year increase. Finance expert Shimeon Lee, a policy analyst at the TaxPayers' Alliance, said the Triple Lock and frozen tax thresholds could see many more older Brits face a "nasty surprise tax" over the coming year. Under the Triple Lock promise, the state pension will rise each April by either inflation (based on the previous September's figure), wage growth (the average increase between May and July), or 2.5% - whichever is the highest. In April, the state pension rose by 4.1%, taking the weekly rate for someone claiming the new state pension to £230.20. Over a year, this equates to a £470 rise going from £11,502 to £11,975. The hike saw weekly payments for the basic state pension rise to £176.45, or £9,175 annually. Warning pensioners, Lee said: "Those with incomes under the personal allowance generally do not pay tax on their income. But because of these frozen tax thresholds, which have been frozen since 2021, more and more people are being dragged into paying tax. That includes more people being pulled into paying the higher rate of income tax. "A lot of pensioners are also now being dragged into paying tax at all, simply because their state pension rises each year due to the triple lock. The threshold stays the same, but the pension goes up, meaning more and more pensioners are crossing the tax threshold." He added: "Frozen tax thresholds affect the poorest people in the country the most, and they can be a really nasty surprise for those who did not expect to be paying tax and who are already struggling to make ends meet. "Now, the personal allowance, if it had risen with inflation, should be around £15,500. That's a huge difference. It means people are paying tax on an additional £3,000 of income. "If you take the income tax rate of about 20%, plus National Insurance of around 8%, that gives you a tax rate of roughly 28%." Join Money Saving Club's specialist topics For all you savvy savers and bargain hunters out there, there's a golden opportunity to stretch your pounds further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game. Simply follow the link and select one or more of the following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities. Around 350,000 more pensioners will pay tax this year compared to 2024/25, according to analysis by former pensions minister Steve Webb. Webb, who is now a partner at pension consultancy LCP, said 650,000 retirees will be paying income tax on their state pension alone in this tax year. Currently, the Personal Tax Allowance - which is the amount of income you earn every year without having to pay tax on it - sits at £12,570. This, like other tax thresholds, is set to remain frozen until April 2028. Under the personal allowance, you can earn up to £12,570 without paying tax on it, and any amount over you do. For example, if you earn £50,270 - this is the highest amount you can earn under the 20% tax band - you pay 20% tax on £37,500 of it. The personal allowance also includes income from your pensions. Sign up to Mirror Money's newsletter for the latest advice and news From universal credit to furlough, employment rights, travel updates and emergency financial aid - we've got all of the big financial stories you need to know about right now. This means if your pension income is over £12,570 then you will pay tax on the amount above it. For example, if your overall pension earnings are £14,000 a year - then you will pay 20% tax on £1,430 over it. According to data released by LCP in June, around 8.51 million older Brits paid income tax on their pensions in 2024/25, up 660,000 from 7.85 million from last year. In 2020/21 - when the pension age rose to 66 years - there were 6.47million people paying tax on their pensions. This means in the last three years 2million more pensioners were dragged into paying tax on the income they received from both the state and private pensions.
Yahoo
21-05-2025
- Automotive
- Yahoo
Speed limit of 20mph 'reduced crashes and deaths'
The introduction of 20mph limits on London's roads reduced the number of deaths and injuries, according to a report commissioned by Transport for London (TfL). Across all 157 schemes on borough roads, there was a 34% decrease in fatal or serious casualties - although other safety features in the control group indicated it would have fallen by 15% anyway. Walking and cycling commissioner Will Norman said the new analysis was "compelling" and "shows clearly that lowering speeds is saving lives." But Callum McGoldrick, from the TaxPayers' Alliance, said blanket 20mph zones "risk punishing responsible drivers without delivering clear value for money." The 20mph speed limit schemes were implemented between 1989 and 2013. The aim of the report, which analyses their introduction over the 24 years, was to better understand their impact over a longer time period, TfL said. The report, the first of its scale in London, TfL added, also examined the three-year periods surrounding the implementation of each 20mph scheme. In London, 5% of roads are operated by TfL with the rest managed by London's 32 boroughs and the City of London. The 20mph speed limit was introduced across the central London Congestion Charging zone in March 2020 although more than half of boroughs now implement the same policy, TfL said. Last year, the Licensed Taxi Drivers' Association branded the widening of 20mph zones "devastating" to black cab drivers. The authors of the latest report recognised the implementation of 20mph schemes "was not the sole cause of improved road safety in this time". The analysis also found: A 35% reduction of all collisions - from 2,560 to 1,715 however the control group showed a drop of 12% would have occurred anyway Deaths fell from 15 to nine The number of children killed dropped from four to one No change was observed in motorcycle-related fatalities BBC London's Transport Correspondent Tom Edwards said the context and bigger picture here was London would be getting more 20mph speed limits. "Already about half of London's roads are 20mph and City Hall are preparing the ground for more on the basis that it saves lives. "That fits with the mayor's Vision Zero policy to get road casualties to zero." He added that while there is a lot of support for 20mph limits, particularly in residential areas, those against them think they reduce productivity and are inconvenient - and the issue has become political elsewhere. London is world's slowest city for drivers - study London's 20mph limits 'not making buses slower' New 20mph speed limit for five London boroughs Mr McGoldrick, from the TaxPayers' Alliance, representents these concerns. "Slowing down traffic across entire areas can clog up roads, delay journeys and hit productivity, especially for tradespeople and small businesses," he said. "Rather than heavy-handed restrictions, councils and TfL should focus on targeted measures at accident blackspots, not treating every motorist like a menace." But Mr Norman said slower speeds "not only protect the most vulnerable, they also help create safer, more welcoming streets, and are a vital part of building a safer London for everyone". "Every death or serious injury on our roads is one too many. "The mayor and I are proud that London is leading the way with bold, evidence-led action to reduce danger on our roads, and we will continue working to eliminate death and serious injury on the transport network as part of our vision zero goal." Listen to the best of BBC Radio London on Sounds and follow BBC London on Facebook, X and Instagram. Send your story ideas to
Yahoo
21-05-2025
- Automotive
- Yahoo
Speed limit of 20mph 'reduced crashes and deaths'
The introduction of 20mph limits on London's roads reduced the number of deaths and injuries, according to a report commissioned by Transport for London (TfL). Across all 157 schemes on borough roads, there was a 34% decrease in fatal or serious casualties - although other safety features in the control group indicated it would have fallen by 15% anyway. Walking and cycling commissioner Will Norman said the new analysis was "compelling" and "shows clearly that lowering speeds is saving lives." But Callum McGoldrick, from the TaxPayers' Alliance, said blanket 20mph zones "risk punishing responsible drivers without delivering clear value for money." The 20mph speed limit schemes were implemented between 1989 and 2013. The aim of the report, which analyses their introduction over the 24 years, was to better understand their impact over a longer time period, TfL said. The report, the first of its scale in London, TfL added, also examined the three-year periods surrounding the implementation of each 20mph scheme. In London, 5% of roads are operated by TfL with the rest managed by London's 32 boroughs and the City of London. The 20mph speed limit was introduced across the central London Congestion Charging zone in March 2020 although more than half of boroughs now implement the same policy, TfL said. Last year, the Licensed Taxi Drivers' Association branded the widening of 20mph zones "devastating" to black cab drivers. The authors of the latest report recognised the implementation of 20mph schemes "was not the sole cause of improved road safety in this time". The analysis also found: A 35% reduction of all collisions - from 2,560 to 1,715 however the control group showed a drop of 12% would have occurred anyway Deaths fell from 15 to nine The number of children killed dropped from four to one No change was observed in motorcycle-related fatalities BBC London's Transport Correspondent Tom Edwards said the context and bigger picture here was London would be getting more 20mph speed limits. "Already about half of London's roads are 20mph and City Hall are preparing the ground for more on the basis that it saves lives. "That fits with the mayor's Vision Zero policy to get road casualties to zero." He added that while there is a lot of support for 20mph limits, particularly in residential areas, those against them think they reduce productivity and are inconvenient - and the issue has become political elsewhere. London is world's slowest city for drivers - study London's 20mph limits 'not making buses slower' New 20mph speed limit for five London boroughs Mr McGoldrick, from the TaxPayers' Alliance, representents these concerns. "Slowing down traffic across entire areas can clog up roads, delay journeys and hit productivity, especially for tradespeople and small businesses," he said. "Rather than heavy-handed restrictions, councils and TfL should focus on targeted measures at accident blackspots, not treating every motorist like a menace." But Mr Norman said slower speeds "not only protect the most vulnerable, they also help create safer, more welcoming streets, and are a vital part of building a safer London for everyone". "Every death or serious injury on our roads is one too many. "The mayor and I are proud that London is leading the way with bold, evidence-led action to reduce danger on our roads, and we will continue working to eliminate death and serious injury on the transport network as part of our vision zero goal." Listen to the best of BBC Radio London on Sounds and follow BBC London on Facebook, X and Instagram. Send your story ideas to
Yahoo
15-05-2025
- Business
- Yahoo
Eight in 10 councils did not assess impact of second homes tax raid
Eight in 10 councils charging the second homes premium failed to carry out impact assessments before introducing the policy, The Telegraph can reveal. Critics said it 'beggars belief' that town halls did not take into account the economic impact of the tax raid despite government guidance recommending they do so. More than 200 authorities in England brought in a 100pc council tax premium on second home owners from April 1. They were handed the power to do so by measures brought in by the previous Conservative government in 2023. Government documents released at the time said: 'Councils should carefully consider whether to charge a premium and make an assessment of possible impacts, including on the local population, its communities and the local economy.' However, just 27 (19pc) of the 145 local authorities that responded to a Freedom of Information request sent by the TaxPayers' Alliance said they had produced an impact assessment. They included: Camden, Cornwall, Durham and the Isle of Wight. Authorities in so-called 'holiday not-spots' such as Bradford, Coventry and Preston were among those who failed to carry out an assessment. Critics have repeatedly questioned why such areas, which have low proportions of second home owners, require the policy. Kevin Hollinrake, shadow housing minister, said: 'We know the Government hasn't carried out its own assessment of the impact of this tax. So it beggars belief that councils aren't doing so either. 'Local residents are already reeling from higher bills, lower income and record taxes because of this punishing Labour government. This will make things worse, not better.' The Government has repeatedly made clear that it is for 'councils to exercise their own judgement on whether to apply a premium'. The Telegraph is calling for the second home council tax surcharge to be slashed or abolished. So far, our campaign has revealed that as little as 9p in every £1 generated from the raid is being spent on affordable housing. The Telegraph also found that 55 authorities are locked in expensive disputes with second home owners who had appealed their bills. John O'Connell, of the TaxPayers' Alliance, said: 'These latest revelations only further demonstrate how disastrous this policy has been, with taxpayers footing the bill for avarice of England's town halls. 'When designing this policy, ministers anticipated it would only be used in certain cases, and would be accompanied by impact assessments. Yet this has not been the case and in most of the country councils have simply used it as a naked cash grab. 'Labour now has a unique opportunity to reverse the harm done by the previous government and scrap this premium for the next financial year.' It comes after the Ministry of Housing, Communities and Local Government (MHCLG), run by Angela Rayner, came under criticism for refusing to investigate the national impact of the raid. In response to a question posed by Mr Hollinrake, the department said it was up to individual councils to decide if the policy was 'effective'. An MHCLG spokesman said: 'It is for councils to exercise their own judgement on whether to apply a premium and they should consider our statutory guidance on impacts and exceptions.' A spokesman for the Local Government Association said the second homes raid is a way of 'encouraging owners to bring these properties back into permanent use'. He added: 'However, we remain clear that council tax itself has never been the solution to meeting the long-term pressures.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
09-05-2025
- Business
- Yahoo
Labour-run council has ‘no excuse' for tax raid on its 33 second home owners
A Labour-run council introduced the second homes premium despite it affecting little more than 30 owners in its borough, The Telegraph can reveal. Figures show there were just 33 second homes on Rochdale's database when it agreed to hit owners with double council tax bills under new measures intended to ease housing shortages. They now face an annual average charge of £4,060, compared with £1,874 last year, according to Telegraph analysis. Local authorities in England were given the power to charge a 100pc council tax premium from April 1 under laws passed by the previous Conservative government. Unearthed government guidance shows that councils were told to only introduce the premium where 'appropriate' and 'take into account local circumstances'. Second homes accounted for just 0.04pc of Rochdale's housing stock, yet the council opted to bring in the surcharge as soon as it could. John O'Connell, chief executive of the TaxPayers' Alliance, said: 'These extortionate premiums were supposedly brought in to ensure that areas with high levels of second home ownership contributed to the local area. 'Even though that policy is wildly misguided, there is no excuse for councils to introduce it in areas with as little as just 33 second homes.' He added: 'It will be of little surprise to taxpayers that politicians have spied an opportunity for a cash grab, and seized it with both hands.' Back in 2023 when the topic of introducing the premium was raised, Rochdale council said there were 33 second homes in the borough. Implementing the surcharge was expected to raise £60,000 in additional income. The council told The Telegraph the number of second homes has since increased to 245 due to the opening of a new town centre development. The figure equates to 0.2pc of the borough's housing stock. The local authority is grappling with a housing shortage, but it has not been caused by the borough's small share of second home owners. There are 1,729 homes run by social housing associations which are standing empty, according to the latest government figures. Of these, around half are in such levels of disrepair that they are unable to be let out. The borough's high number of vacant homes comes as the council contends with a bulging housing waiting list of 9,000 people – one of the largest in the country. Councillor Carol Wardle, Rochdale's cabinet member for finance, said: 'In November 2023 when this premium was approved, it was in addition to the removal of discounts on empty properties and on top of other measures aimed at persuading owners to bring properties back into use rather than leaving them empty. 'Our approach is in line with the majority of other authorities in Greater Manchester and with services still under significant financial pressure we will put the premium to good use for the benefit of the local community.' Last year, the Ministry for Housing, Communities and Local Government said it was 'clear that it expects local councils to take into account local circumstances when determining where it is appropriate for a premium to apply'. Other councils with minimal second homes include Watford, which according to government data has just 38 second homes. It has agreed to implement the premium from April 2026. The findings come after The Telegraph launched a campaign to abolish the levy, which has been supported by several politicians. Dozens of readers have been in touch to complain of exorbitant bills being issued on inherited family homes or properties that are used every week for work. Telegraph analysis revealed local authorities are spending as little as 9p in every £1 generated from the raid on affordable housing, while other councils are sitting on hundreds of empty properties of their own. A Ministry for Housing, Communities and Local Government spokesman said: 'We are determined to fix the housing crisis we have inherited, but we recognise local leaders are best placed to understand the impacts that second homes can have on their areas, including driving up housing costs and damaging local services. 'That is why local councils are now able to add up to 100pc extra on the council tax bills of second homes, and it is for them to decide whether to implement this.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
