Downing Street said on Monday that people whose sole income is the state pension should not have to pay income tax during this parliament, despite an expected increase in the personal allowance to about £13,000.
A prime ministerial spokesperson was cited as saying the government did not intend for those relying only on the state pension to face an income tax liability as the threshold rises. No further fiscal details or timings were given in the statement.
Separately, the Liberal Democrats announced they will attempt to introduce a cap on political donations by seeking amendments to the representation of the people bill as it passes through the House of Lords.
Lisa Smart, the Lib Dems' Cabinet Office spokesperson, urged more robust action on political finance. She said existing residency requirements were "not good enough" and accused the Conservatives of having "sat on their hands" in previous administrations. Smart described the recent scale of donations to Reform as "unprecedented in British politics" and said it should alarm anyone concerned about the integrity of democracy. "We cannot afford to see the Americanisation of our politics, with out of control political spending, funded by stratospheric sums of crypto and corporate cash," she added, warning that the donations revealed "whose side Reform are on."
The Liberal Democrats framed their planned amendment as a response to what they called large, concentrated donations including funds from crypto-related donors and foreign or corporate interests. Their move comes as the representation of the people bill continues its passage, and the party intends to press peers to adopt tighter limits on political contributions.
Both issues — the treatment of pensioners for income tax and limits on political donations — are likely to feature in parliamentary debate in the coming weeks as lawmakers consider the bill and other measures affecting taxation and electoral regulation.