NARPO disappointed with Chancellor’s “tax raid on retired police officers”

The National Association of Retired Police Officers has expressed its disappointment at plans announced by the Chancellor to scrap age-related tax allowance for pensioners.

The so-called “Granny Tax” will mean that up to 4.5 million of the country's older residents could lose out through the Chancellor's proposals to gradually eliminate the current allowances. From April 2013, new pensioners will not be able to benefit from the allowances. All existing over-65s will see their allowance frozen at £10,500, and the allowance will remain at £10,660 for over-75s.

Eric Evans, the President of NARPO said:

“As many as 4.5 million pensioners could lose an average of £83 per year, while those turning 65 next year will lose up to £322. Many hard-working police officers who have given long years of service will be badly affected by this, as will officers who are planning for their retirement. It’s all the more disappointing when at the same time millionaires will be upwards of £40,000 a year better off because of a cut in the 50p tax rate. This government needs to listen to the real concerns of the police family about how serving and retired officers are being treated.” 

The Institute of Fiscal Studies concluded that because of the Chancellor’s decision to reduce the threshold for the 40% tax rate to £41,450 from April 2013, so-called ‘middle England’ tax payers will be dragged into the higher 40% rate from April 2013. Mr Osbourne asserts that the reduction of the 50p rate to 45p will cost the Treasury ‘only £100 million’, though according to the IFS this is far from certain.

Mr Evans continued,

“It seems that older people and middle earners will be paying for this tax cut for the very rich, and this is totally unacceptable. This tax raid on pensioners is unfair and should be opposed in the forthcoming budget debate in the House of Commons.”

Note to editors:

NARPO is a member organisation representing retired police officers of all ranks and police widows from police forces throughout England and Wales. NARPO offer a range of services to members including advice on pensions and other issues affecting the welfare of our members.

For further information, or if you have any queries regarding the press release or NARPO as an organisation, please call our CEO, Mr Clint Elliot on 01924 362 166 or by email