State Retirement Pensions: Taxation

(asked on 4th March 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of ensuring that tax is not paid on state pensions.


Answered by
Torsten Bell Portrait
Torsten Bell
Parliamentary Secretary (HM Treasury)
This question was answered on 12th March 2026

Exempting the State Pension from income tax entirely would reduce tax receipts substantially undermining the public services we all rely on – especially the NHS.

However, I can confirm that those whose sole income is the basic and full new State Pension, without any increments, will not pay any income tax this tax year or next.

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