29/09/2026
Andy Burnham’s first Labour conference speech as Prime Minister contained several announcements which could have significant tax and financial implications — although its fair to say much of the detail is still to come.
Here are some key points:
💷 1. The pension triple lock is changing
The government says the triple lock will remain unchanged for the rest of this Parliament, but from April 2030 it would be adjusted.
The State Pension would continue to increase annually by at least inflation or 2.5%, while being designed to maintain its value relative to earnings.
The proposed change aims to generate significant savings to help fund a new National Care Service.
🏦 2. Low-income pensioners and income tax
Burnham also confirmed a commitment that low-income pensioners will not be dragged into paying income tax during this Parliament.
That raises important questions for advisers: how will this impact the State Pension, personal allowances, other pension income and the wider tax system?
🏥 3. Who pays for social care?
The proposed National Care Service would be free at the point of use, with no care charges paid out of a basic State Pension.
The key financial question is therefore not just about spending more on care — it is about how the cost of care is distributed between individuals and the state, with pension changes providing part of that funding mechanism.
⚡ 4. VAT on electricity
One of the most immediate announcements: Burnham said VAT would disappear from electricity bills from Thursday.
📊 5. And then there’s the Budget…
Perhaps the biggest question for taxpayers and businesses is what wasn't announced today.
With the Budget due on 28 October, important questions still remain around the wider tax burden, business taxation, public spending and the government's fiscal plans.
👉 What do you think today's announcements mean for taxpayers, pensioners and businesses?
