"State Pensions have always been a hot potato in Elections"
Three ways the General Election could impact your finances
28 June, 2024
With the 2024 General Election fast approaching, we reached out to a handful of financial advisers to get their take on what it means for your money. Adrian Kidd, Life Planner and Coach at EQ Financial Planning, weighs in with his thoughts on the likelihood of tax changes, tweaks to the Living Wage and the idea of the "Triple Lock plus".
1. Taxes
As with all General Elections, there is now a lot of talk and promises about what and will not happen from the main parties. As Labour seem a shoe-in to win, the main claims seem to be that they are promising very little change in the main, in respect to taxes. They have pledged to not raise taxes beyond the ones already stated, such as a windfall tax on oil and gas firms, further tightening of the non-domicile tax system, adding VAT to private school fees, and taxing private equity bonuses. The feasibility of all pledges from all parties are under scrutiny right now and so I’d be taking a lot of the hype with a pinch of salt, as it's not like these promises never get broken... right?
2. Living Wage
For those starting their careers, the Living Wage and the impact of inflation is also a key policy for Labour should they win. To deliver a genuine living wage, Labour has said that it would change the Low Pay Commission’s remit, which would mean that the “minimum wage will for the first time reflect the need for pay to take into account the cost of living”. This would certainly help people.
3. Pensions
Lastly, for those at the other end of their careers, pensions have been a big talking point. They have committed to the “Triple Lock” and have ridiculed the Tory policy of “Triple Lock plus”, saying it's not sustainable. I’d say neither are but State Pensions have always been a hot potato in elections.
Labour have also recently u-turned on their previous pledge to bring back the Lifetime Allowance. I am sure the industry, and clients who are affected, will be confused and fatigued by the complexity here, and specialist advice will be even more valuable for the lucky few.
The one thing that people aren’t considering I feel, is that if Labour do not win a majority - if that plays out, then the UK stock market is likely to react badly, as will the pound.
