UPDATED 30 MAY: This story has now been updated to include the manifesto of the Scottish National Party (SNP)
Almost all of the major political parties have set out their stalls by publishing their manifestos over the past week, providing voters with their visions for the country should they sweep to power on June 8.
Which? Money has analysed the manifestos to examine what they might mean for your finances – from changes to the state pension and the housing market to the income tax you pay. Here, we highlight what impact each party’s plans will have on your purse.
The Conservatives retained their commitment to increase the tax-free personal allowance to £12,500 and the higher-rate threshold to £50,000 by 2020.
The party proposed shifting the state pension triple-lock to a double-lock, increasing by earnings or inflation (whichever is highest), and proposed a new scheme to give people breathing room if they were struggling with debt.
The Conservatives also proposed a new system to pay for social care, and stated that people’s properties would be taken into account when financially assessed for care costs for both residential and at-home care. Under this system, the remaining £100,000 of assets left in their state would be untouched by care costs.
Find out more: our analysis of the Conservative manifesto in full
Labour’s plans include a brand new income tax system, whereby the first £80,000 of your income are taxed at 20%; between £80,000 and £125,000 are taxed at 45% and £125,000 and above are taxed at 50%.
It would retain the state pension triple-lock, and offer support to 2.5 million women affected by changes to the state pension age.
Among its measures on property, it would extend the Help to Buy equity loan scheme to 2027.
Find out more: our analysis of the Labour manifesto in full
Liberal Democrat party
The Lib Dems plan to add 1p in the pound to income tax rates, explicitly to pay for the NHS and social care, as well as aligning National Insurance and income tax thresholds. The party would also lower the inheritance tax threshold, and scrap the married couple’s allowance.
It would kickstart a ‘rent to own’ scheme and promote three year tenancies among its housing plans.
On pensions, the Lib Dems committed to keep the state pension triple-lock, and look to introduce a flat level of pension tax relief – higher than the basic rate (20%) but lower than the higher (40%) and additional rate (45%).
Find out more: our analysis of the Liberal Democrat manifesto in full
Plaid Cymru pledged to retain the state pension triple-lock, and vowed to fight increases to the state pension age, as well as calling for an independent review into miners’ pensions.
It wants to create 10,000 affordable homes in Wales, and by opening a publicly-owned bank, it will ensure there is always a local bank branch for communities.
Published on 22 May, the Green party has announced a series of plans for taxation. It would introduce a ‘wealth tax on the top 1% of earners’, and change the inheritance tax rules so that the tax is based up upon the overall wealth of the heirs of an estate.
The Green manifesto states that the party would take steps towards a universal basic income for everyone, as well as ‘redress pension injustice’, although there’s little detail on what that would mean.
On banking, the Green’s would ‘use the government-owned Royal Bank of Scotland to create a network of local people’s banks for every city and region, obliged to lend locally and provide cheap basic banking services.’
Perhaps the most detail, however, is in the Green party’s housing policies. It aims to introduce a ‘living rent for all through rent controls and more secure tenancies for private renters’, as well as banning letting fees and introducing a ‘Renters’ Union’.
It also aims to build zero-carbon affordable homes, 100,000 of which would be social-rented, every yearby 2022. The Greens would scrap the Right to Buy scheme and bring empty homes back into use through a Land Value Tax, while ‘axing buy-to-let tax breaks, and backing community-led approaches to building affordable homes.’
UK Independence Party (UKIP)
UKIP announced plans to increase the personal tax-free allowance to £13,500, and the higher-rate tax threshold to £55,000 by the end of parliament – and that when ‘economic conditions allow’, those earning more than £100,000 would once again receive the full person allowance.
It also aims to increase the inheritance tax threshold to £500,000 per person (£1m per married couple or civil partnership), and scrap plans to increase probate fees.
Whilst keeping the state pension triple lock and winter fuel allowance, UKIP would introduce a ‘flexible state pension window’, giving people the choice to retire earlier for a reduced state pension.
On housing, UKIP proposes building 100,000 affordable homes a year by embracing module – or factory-built – homes.
Scottish National Party (SNP)
The SNP plan to continue the state pension triple-lock, but opposes increases to the state pension age beyond 66. It has also pledged to support women affected by increases to the state pension age.
It supports an increase to the minimum wage to the level of the Living Wage. It will also support a UK-wide income tax hike from 45p to 50p for those earning more than £150,000, and promises not to increase VAT or National Insurance contributions.
Find out more: our analysis of the SNP manifesto in full
Visit our general election hub to read all the latest news and our further coverage.