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(Clauses 1, 4, 8, 189 and 209, Schedules 1, 23 and 33, and new Clauses and new Schedules relating to value added tax)

If they were being taxed at 20%, that would mean tax of about £13 a week on their pension. Such pensioners will be hit hard by the changes. We know how hard it already is for many people to save enough for a modest pension, so why have the Government picked on pensioners to pay more? As the chief executive of Saga has put it:"““Amid all the talk of tax cuts…the main tax-raising measure””" in the Budget"““consisted of a stealth tax increase on older people who did actually work and save hard for their future.””" Gransnet has warned that"““this tax change offers no incentive to save””," and the National Association of Pension Funds has stated that it will"““come as a blow to millions of pensioners who have paid in to the tax system throughout their working lives. Pensioners with modest amounts of pension saving stand to be the biggest losers.””" Let us be clear that the change will hit people with small pensions who have made sacrifices to save and are now being penalised for doing the right thing.