Sunak Falls into 'Approval Rating Slump', Announces Pension Income Tax Cut Plan in UK

Tax Cut Benefits of 170,000 Won for 8 Million People Next Year... Increasing to 520,000 Won by 2030
Interpreted as Targeting Senior Voters, Accounting for 25% of All Voters

The Conservative Party, led by UK Prime Minister Rishi Sunak, who is struggling with low approval ratings, has pledged income tax cuts for pension recipients as part of an early general election manifesto scheduled for July.

According to foreign media including The Telegraph on the 27th (local time), the Conservative Party announced that starting next year, 8 million pension recipients will receive a tax cut benefit of ?100 (approximately 173,000 KRW) each, with plans to gradually increase the tax cut amount annually. They anticipate that by the end of the next parliamentary term in 2030, the tax relief will increase to ?300 (approximately 520,000 KRW).

Sunak Falls into 'Approval Rating Slump', Announces Pension Income Tax Cut Plan in UK

[Image source=Yonhap News]

Regarding this, Prime Minister Sunak stated, "This bold measure shows that we are on the side of pension recipients," adding, "The Labour Party is trying to tax all state pension recipients for the first time in history."

The Conservative Party explained that this pledge is part of the ‘Triple Lock’ system for increasing state pensions. The Triple Lock adjusts the UK state pension payments according to the highest of the Consumer Price Index (CPI), average wage growth, or 2.5%. Due to the Triple Lock, pensions increased by ?900 (1.56 million KRW) this year, and from next year, the Conservatives plan to provide ?100 in tax cuts annually.

Prime Minister Sunak’s tax cut pledge is interpreted as an effort to win the elderly vote. As of February last year, the number of pension recipients in the UK was 12.6 million, accounting for one-quarter of all voters (approximately 50 million). Ahead of the early general election on July 4, the ruling Conservative Party led by Sunak is trailing the main opposition Labour Party by more than 20% in approval ratings. Nevertheless, Sunak has announced his intention to hold an early general election, asserting that he is the best candidate to protect security and the economy.