Darling promises help for pensioners in next budget

Elderly savers have been promised help in the next budget by Chancellor Alistair Darling.

The recent interest rate cuts, which have taken the Bank of England base rate down from five per cent to one per cent since October, have hit savers badly, and many pensioners rely on savings income to maintain their standard of living. Mr Darling said he would be taking action to help beleagured elderly savers.

Some of the measures under consideration are: an increase in the tax threshold for over 65s and an extension of tax-free ISAs.

Currently pensioners pay no tax on the first £9,000 of income, and the Tories have proposed an increase of £2,000, which would save the elderly £400 a year.

The Building Societies Association last week said the Government was hurting savers by concentrating on measures designed to help mortgage holders.

Mr Darling said on Sunday’s Andrew Marr Show in the BBC that he particularly understood elderly savers being angry at interest rate reductions. Saying that he realised that older people relied on savings, he said it was one of the reasons that he raised the tax-free amount of older people than for the rest. “Yes,” he agreed, “we do need to help people.”

  What's this?