Rachel Reeves is more reliant on pensioners for income tax than Gen Z workers (Image: Getty)
Rachel Reeves is more reliant on pensioners for income tax than Gen Z workers, official figures show. Shocking new data shows 5.45million Brits aged over 70 paid income tax in the 2022-23 financial year, which compares to just 5.23millon workers aged under 30. The research highlights the Government’s heavy reliance on pensioners to raise money, with income tax being Labour’s single biggest revenue source.
This comes as the pushes more pensioners into the tax bracket to pay the levy. Data from HM Revenue and Customs () shows the number of top rate taxpayers rose by a staggering 10% in the 2022-23 tax year, hiking the figure to 600,000. The number of higher rate taxpayers also rose by 680,000 to a whopping 5.1m.
5.45m Brits aged over 70 paid income tax in the 2022-23 financial year (Image: Getty)
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The has resulted in several years of above-inflation increases, dragging more pensioners into the income tax net.
A rise in economically inactive youths contributes to the contrast, with many young adults not even looking for a job. Nearly 1 million 16-24-year-olds are not in employment, education, or training.
The data contradicts pre- trends, where more young Brits were paying income tax than those over the age of 70. data illustrates the reversal since the pandemic, where 4.65m retirees paid income tax in 2019-20, compared to 4.8m under 30-year-olds.
The total tax figure paid by pensioners who no longer work amounted to £19.1bn in 2022-23, compared to £18.3bn paid by under 30s. Despite the nearly £1bn difference, the elderly represent a much smaller proportion of the UK’s population.
Over 65s are now more likely to pay income tax than Brits aged 16 to 64 (Image: Getty)
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Similar research results from the Institute for Fiscal Studies show over 65s are now more likely to pay income tax than Brits aged 16 to 64, with two thirds of pensioners now paying the levy.
Although four fifths of the UK’s workforce are subject to the basic rate of income tax, they account for just £76bn of revenues from tax, data reveals. This contrasts with the 5m taxpayers responsible for the higher rate, generating £85.1bn. Workers paying the 45% rate account for a staggering £83.4bn despite only representing 2% of the workforce.