State Retirement Pensions: Income Tax
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 March 2026 to Question 115363, if she will provide the underlying data used to calculate the impact of the Personal Allowance freeze on those of state pension age.
Answered by Dan Tomlinson
Information on the methodology used to estimate the impacts of maintaining the personal income tax thresholds can be found in HM Treasury’s Policy Costing paper.
Budget_2025-Policy_Costings.pdf
The Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament. At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details in due course.
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