As the date for the General election approaches, we take a look at what Labour and the Conservatives have included in their manifestos regarding personal finance.
The value of the pound fell on the final day of May as a new poll from YouGov revealed that the possibility of a hung parliament was a very real one. There are lots of potential financial changes on the horizon which will have an impact on a large number of people in the UK, and this uncertainty is being reflected in the strength of the currency.
But what are the Labour and Conservative policies which are causing this uncertainty? This Is Money have highlighted some of the main manifesto pledges from the two main parties regarding finance...
Labour
No increase in income tax for anyone earning less than £80,000
Any earnings above £80,000 will be taxed at 45% and earnings above £123,000 will be taxed at 50%
National Insurance Contributions and VAT will not increase
The Living Wage will rise to £10 an hour by 2020. The Living Wage is currently set at £7.50 for those aged 25 and over
Stop all planned state pension age rises beyond the age of 66 and retain the triple-lock on state pensions
Conservatives
Increase the personal allowance to £12,500 by 2020
Increase the threshold for the higher rate of tax to £50,000 by 2020
Increase the Living Wage to 60% of median earnings by 2020
Automatic enrolment will be extended to self-employed people
Abolish the triple-lock on state pensions and replace with a 'double-lock' as of 2020
Introduce a £100,000 capital floor for people paying social care costs
Pensions
While the Labour party have pledged to put a stop to age increases for state pension eligibility, the Conservatives say that the state pension age must reflect “increases in life expectancy, while protecting each generation fairly”. Neither party explicitly mentions pension tax relief but that does not mean a reform is unlikely from either party. Likewise, there is no mention of cracking down on pension scams. This is likely to be addressed by both parties however, as there is a growing risk of elderly and vulnerable people being scammed by cold contact methods, such as cold calling.
You can read both the Labour Party Manifesto and Conservative Party Manifesto online.
