Andy Burnham Pledges Cost of Living Relief and Pension Protections

Prime Minister Andy Burnham introduced a 10-year new plan for Britain focused on prioritizing the cost of living and providing breathing space for struggling households. In his first speech at Downing Street, Burnham vowed to implement measures to make life more affordable for working people and honor existing commitments to pensioners.

As part of this strategy, Burnham confirmed that the government will not levy income tax on state pensioners who rely solely on payments from the Department for Work and Pensions. This maintains a policy established by former Chancellor Rachel Reeves, ensuring retirees do not face income tax bills even as the Triple Lock mechanism increases the full new state pension to £291 above the £12,570 tax-free allowance in April 2027. HM Treasury stated the government remains committed to this tax-free status throughout the current Parliament, noting the Triple Lock will increase incomes for 12 million pensioners by up to £470 this year.