Budget 2025: WhyRachel Reeves’ stealth taxes are hitting workers hardest | The IndependentNotifications can be managed in browser preferences.Jump to contentIndependentSwipe for next articleIndependent Bulletin homepageDownload ourSocial PartnerWe are 8 logo (opens in a new tab)AllNewsSportCultureLifestyleKate DevlinFriday 02 January 2026 09:05 GMTDefiant Rachel Reeves says she will be Chancellor for yearsLabour's Chancellor, Rachel Reeves, controversially froze income tax and national insurance thresholds until 2031, a decision expected to raise £23 billion for the Exchequer.Analysis by the Centre for Policy Studies (CPS) indicates that a worker currently earning £50,000 will be £505 worse off in real terms by 2030-31 due to this policy.Conversely, pensioners are projected to be at least £306 better off, and those on standard universal credit £290 better off, thanks to the 'triple lock' and benefit increases.The CPS described this as 'fiscal drag in action', quietly increasing taxes for millions of workers while protecting state pension and benefit recipients.A Treasury spokesperson defended the measures as 'fair and necessary' to fund public services, cut debt, and address the cost of living.In fullReeves stealth taxes ‘hammering’ workers while pensioners and benefits claimants ‘better off’Thank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in