Pensioners: Tax Allowances
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing the tax allowance for pensioners to £15,000.
Answered by James Murray
The Government is committed to keeping taxes as low as possible for pensioners while ensuring fiscal responsibility, which is why it is not extending the freeze on personal tax thresholds that was implemented by the previous government, and is instead allowing them to rise with inflation from April 2028.
At Autumn Budget, the Government announced that the basic and new State Pension will increase by 4.1% from April 2025. This means those on a full new State Pension will receive an additional £470 a year.
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