Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether he has made an assessment of the proportion of people receiving the basic State Pension who would be affected by an increase in the level of taxation of pension income.
State Pension income has always been subject to taxation. Pensioners whose only income is the basic State Pension, without any increments, do not currently pay income tax. This is because all taxpayers benefit from the income tax Personal Allowance PA, which allows them to earn £12,570 each year tax free.