Pensioners: Income Tax

(asked on 16th September 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department plans to review the personal tax allowance threshold to prevent pensioners paying income tax.


Answered by
Torsten Bell Portrait
Torsten Bell
Parliamentary Secretary (HM Treasury)
This question was answered on 16th October 2025

The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.

The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast.

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