State Retirement Pensions: Income Tax

(asked on 28th January 2026) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether his Department is taking steps to ensure pensioners issued with simple assessment tax demands are advised to contact their local authority to reassess their entitlement to Housing Benefit and Council Tax Reduction.


Answered by
Stephen Timms Portrait
Stephen Timms
Minister of State (Department for Work and Pensions)
This question was answered on 26th February 2026

The assessment of entitlement to Housing Benefit and Local Council Tax Support takes into account a person’s net income plus the value of any DWP benefits they receive.

Taxation is a matter for HMRC. It treats pension income, whether State or occupational, in the same way as other taxable income. However, the Chancellor has said that over this Parliament those whose only income is the basic or new State Pension without any increments will not have to pay income tax.

The government will set out more detail in due course.

No new guidance has been issued to local authorities on this matter.

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