Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the oral contribution of the Exchequer Secretary to the Treasury in the debate on the Finance Bill on 3 March 2025, Official Report, column 92, whether her Department has calculated the number of people in receipt of the full rate of the new state pension that will pay income tax in (a) 2025-26, (b) 2026-27, (c) 2027-28, (d) 2028-29 and (e) 2029-30.

The Government is committed to ensuring that older people are able to live with the dignity and respect they deserve, and the State Pension is the foundation of state support for older people. The Government is committed to the Triple Lock for the duration of this parliament, and in April 2025, the basic and new State Pension will increase by 4.1%. This means that pensioners on a full new State Pension will get a boost of £470 to their incomes from April this year. Over the course of this Parliament, as per the forecast at Autumn Budget 2024, the yearly amount of the full new State Pension is currently forecast to go up by around £1,900, based on the Office for Budget Responsibility’s latest forecast.

The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. At our first Budget, we decided not to extend the freeze on personal tax thresholds and, as a result, they will rise with inflation from April 2028, meaning people will keep more of their income.