Pensions changes a 'stealth tax' on middle-classes
Reforms out tomorrow will almost halve second state pension income for middle-earners
The government will be accused of trying to slip through another ‘stealth
tax’ on middle-income earners when it reveals its pensions reforms tomorrow.
The changes will see people earning more than £18,000 a year lose almost half
of their second state pension, but with no corresponding reduction in their
national insurance contributions, according to The Daily Telegraph.
Tory MPs have accused the government of placing another stealth tax on the
Plans drawn up on the recommendations of Lord Turner would see the state
second pension turned into a flat rate payment of £60 a week at today’s prices,
despite current arrangements meaning those who pay top rates of tax are entitled
to up to £110 a week.