Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing measures to prevent pensioners with small amounts of income in addition to the state pension from facing a higher tax liability than those whose only income is the state pension.
Pensioners whose only income is the basic or new State Pension, without any increments, do not currently pay income tax. This is because the full new State Pension is below the tax-free Personal Allowance this year.
In line with the commitment made at Budget 2025, pensioners whose incomes only just exceed the Personal Allowance will not have the administrative burden of paying small amounts of tax in this Parliament.
More details will be set out at Budget 2026.