Lib Dems in Milton Keynes want Personal Allowance increase for those aged over 66

Pensioners should be allowed to earn more before they start to pay tax. That’s the view of Milton Keynes Lib Dems who are calling for an increase in the Personal Allowance for those aged 66 years old or over.

The Lib Dem Group will propose a motion at Full Council next week which calls on the Government to increase the Personal Allowance rate to £21,000 per year.

Currently, income tax is not paid on earnings up to £12,570 – this is known as the tax-free personal allowance. The basic rate of income tax is 20%, so a fifth of those earnings go to the Government.

Retired residents pay income tax on any income over their Personal Allowance, this applies to all pension income including the state pension.

Councillor Robin Bradburn, Lib Dem Group Leader on Milton Keynes City Council will move the motion, asking the Leader and chief executive to write to the Chancellor of the Exchequer to call for a change to the Pay As You Earn (PAYE) system.

Councillor Robin Bradburn, Lib Dem Group Leader on Milton Keynes City Council, said: “The Government have put the needs of our elderly residents on the back burner. After having worked hard for most of their lives, the current economic climate of soaring food, energy and fuel costs coupled with inflation hitting a 41 year high has left retirees without a leg to stand on.

“The retired should not be left to suffer, I am urging the Government to take action.”