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State Pensioners £12,570 HMRC Alert as 600,000 After Freeze Confirmed
Frozen income tax thresholds will push up to one million UK pensioners to pay income tax by 2030-31, generating about £100 million annually, the Office for Budget Responsibility says.
- On Tuesday, the Office for Budget Responsibility forecast 600,000 more state pensioners will pay income tax in the next financial year, rising to one million by 2030-31.
- Policy context: the frozen personal allowance and the triple-lock mechanism mean Chancellor Rachel Reeves extended a freeze in her November 2025 Budget, with the full new state pension projected to exceed the personal allowance by 2027-28.
- HM Revenue & Customs updated its modelling, which fed into the OBR's revised estimates, indicating pensioners paying income tax will yield around £100m in 2030-31.
- The government has pledged to exempt people whose only income is the state pension but has not set out details, while a parliamentary petition with 100,000 signatures guarantees a Commons debate and the Liberal Democrats demand immediate protections.
- Poorer pensioners face immediate impacts from the next financial year, as some pensioners with additional income streams will already be liable, squeezing take-home incomes and pressuring the Treasury.
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Get Surrey
Get SurreyPensioners £12,570 warning as 600,000 hit - new statement from OBR
A massive campaign has been growing for state pensioners to be allowed to get £25,140 before paying tax
·Middlesbrough, United Kingdom
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Rachel Reeves under fire as one million more pensioners face tax hit 'buried in small print'
The Office for Budget Responsibility has forecast that an additional one million pensioners will find themselves liable for income tax by 2030-31, according to projections released alongside the Chancellor's Spring Statement on Tuesday
·London, United Kingdom
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Total News Sources12
Leaning Left3Leaning Right2Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 27%
C 55%
R 18%
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