A WIDOW fears pensioners are being forced into poverty as a result of States policy. Patricia McIntyre, 71, who lives in the Castel, is disputing age-related income tax allowances, saying they are unfair to people in circumstances such as hers.
‘There’s this huge differential when you’re bereaved,’ said the retired florist.
‘If my husband was alive, I would not be in a tax bracket at all.
‘The poverty wage is supposed to be £250 per week.
‘I’m not complaining about the pension. But by raising the tax threshold it’s quite an effective way of helping people.’
Since her husband died in 1999, Mrs McIntyre said she had noticed her food bill had been slightly less and she had been spending fractionally less on petrol.
‘It doesn’t cost that much more to run a home for two people than it does for one,’ she said.
‘What happens if you suddenly need a big repair? And why should single people be penalised?’
And Mrs McIntyre said she did not think a tax credits system would be a viable solution.
‘I’m sure it would cost as much to implement as it would to distribute.’
A spokeswoman for Treasury and Resources said that historically there had been an additional income tax allowance for those in the ‘aged over 64′ category which ensured that those whose only income was the basic old age pension remained outside the tax net.
The current States pension is £7,878 per annum - which works out at £151.50 per week.
Therefore, said the spokeswoman, a single pensioner could receive up to £1,872 per annum of other income, savings interest, for example, before entering the tax net.
‘An increase of £1,000 in the basic personal income tax allowance for single persons in the ﾓaged over 64ﾔ category (and corresponding adjustments to the married person allowances) would cost the island £1.4m. per annum,’ she said.
‘However, this increased allowance would benefit all taxpayers aged over 64, irrespective of their income and would not be the most cost-effective way of furthering the aims of the Corporate Anti-Poverty Programme.’
But Mrs McIntyre was not convinced, saying that she did not think the States was considering single people and that she had laughed off the suggestion there were fears elderly people receiving widow’s pensions might benefit by cohabiting.
‘If they made the single tax allowance two-thirds of the married couples’ that would help a lot,’ she said.
‘It’s not just my situation, there are lots of people out there who are in financial difficulty.
‘I just hope they’re not trying to fill the black hole with pensioners’ tax.’
Article posted on 1st September, 2007 - 12.00am
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