State pension triple lock ‘wiped out’ after Jeremy Hunt ‘stealth tax’ | Personal Finance | Finance [Video]

Pensioners across the country will see an 8.5 percent increase in their pension next month. The triple lock system means the state pension rises in line with average earnings growth, inflation or 2.5 percent – whichever is highest. The boost will hand many retired Brits an extra £190 in the next tax year after adjusting for higher prices.

However, a new study from the Resolution Foundation has found that the much-lauded increase will amount to very little. The think tank discovered that pensioners will end up just £20 a year better off thanks to Jeremy Hunt’s “stealth tax” raid.

The Chancellor’s six-year freeze in income tax thresholds will cost pensioners £170. The Resolution Foundation said: “A basic-rate tax-paying pensioner will essentially see their above-inflation state pension rise wiped by this April’s personal allowance freeze.”

The think tank has previously highlighted that eight million pensioners are facing a £1,000 hit from Mr Hunt’s stealth tax raid since …