Government Assurance
Prime Minister Andy Burnham confirmed that state pensioners whose only source of income is the State Pension will not pay income tax. The personal allowance remains frozen at £12,570 until 2028.
Pension Details
- Current full State Pension: £230.25 per week
- Personal allowance threshold: £12,570 per year
- Tax applies only if pensioners have additional income
Treasury Statement
The Treasury confirmed the government will continue this policy through the current Parliament. By keeping the Triple Lock, 12 million pensioners will see income increases up to £470 this year, benefiting from the highest Personal Allowance in the G7.
Future Measures
The Treasury is working on excluding pensioners solely dependent on the State Pension from the Simple Assessment tax process, with details to be announced in due course. No increase to the personal tax allowance has been committed, but the government will review this at the upcoming budget.
