Alison Griffiths

It is a pleasure to serve under your chairmanship, Dr Huq. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for opening this incredibly important debate, and I thank the Petitions Committee for scheduling it today. I represent the communities of Rustington and East Preston, often described as the state pension capital of Britain. For them and for thousands of others across my Bognor Regis and Littlehampton constituency, this debate is not about Treasury spreadsheets or tax theory, but about their day-to-day finances and whether they feel the system is treating them fairly. They have worked hard and paid in throughout their life and are now looking at a situation in which the state pension continues to rise while tax thresholds remain frozen. They are asking a simple question: why are more and more pensioners being drawn into paying tax? It is important to be clear about what sits behind that concern. The issue is not that pensioners have suddenly become wealthier; it is that frozen tax thresholds mean that the tax system reaches further into people’s incomes each year. That is why people feel so frustrated. They see their state pension increase on paper, only to find more of it being taken by the taxman. It affects more than pensioners—workers, families and businesses are feeling the effects of frozen thresholds, too, and across the country more people are paying more tax despite no change in the headline rates—but pensioners often feel it particularly acutely because many are living on fixed incomes and have less flexibility to absorb the additional costs. The Government regularly tell people that they have not increased income tax rates. However, pensioners, who are a savvy bunch, can see exactly what is happening. They do not need a Treasury briefing to understand where more of their income is being taxed each year. The Chancellor chose to extend the freeze in the personal allowance until 2031. That was a political choice. It means that more pensioners will continue to be drawn into the tax system year after year. Ministers cannot make that decision and then act surprised when pensioners ask questions about fairness. What concerns me most is the uncertainty. Last year’s Budget included an announcement that pensioners whose sole income is the state pension should not have to deal with small tax bills through the simple assessment process from 2027. Yet my constituents still do not know who will qualify, how the system will work, when the details will finally be published or how pensioners will be protected from unexpected tax demands. Those are reasonable questions, and people deserve answers. There is also a broader principle at stake. At the previous general election, the Conservatives set out a different approach: we argued that the tax-free allowance for pensioners should keep pace with the state pension, so that people could benefit from rises in the state pension without constantly worrying that frozen thresholds would erode those gains. Whether or not Members agree with that approach, at least it sought to address the underlying problem. The Government’s approach so far has been to extend the freeze, promise further details at some future point and ask pensioners to wait. My constituents deserve better. In Rustington, in East Preston and across Bognor Regis and Littlehampton, pensioners want clarity, fairness and above all a Government who recognise the contribution that they have made throughout their working life. I am not here to write the Budget from Westminster Hall, but I am here to say very clearly that pensioners in my constituency should not find themselves paying more and more tax simply because thresholds remain frozen year after year. I hope that the Minister will provide some answers today.