Pensioners: Taxation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of keeping the personal allowance at £12,570 on pensioners’ tax liability.
Answered by Dan Tomlinson
The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast.
The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
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