Pensioners over 65 will see their old age income tax perks eaten by inflation in a £3billion raid designed to pay for a new one-size-fits-all tax system. Rughly five million pensioners will suffer, some by as much as much as £260 a year, after the Government wielded the axe on income tax allowances for older people.Currently, pensioners aged over 65 and 74 can bank a larger income - typically from state and personal pensions, employment, or elsewhere - without paying any tax. Those between 65 and 74 can take home £9,940; those aged 75 can take £10,090.This is more generous than the personal tax-free income allowance of £7,475 for those under 65....Read more here