State Retirement Pensions: Income Tax
(asked on 3rd December 2025) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Section 4.167 (State Pension and Simple Assessment) of the Budget 2025, if she will publish the cost impact of this policy.
This question was answered on 8th December 2025
As the Chancellor has said, over this Parliament those whose only income is the basic or new State Pension without any increments will not have to pay income tax.
As announced at the Budget, the government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28.
The government will set out more detail next year.