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HMRC personal allowance changes for pensioners debated by MPs in parliament
Ministers said a higher allowance would cost the Treasury billions a year, while 120,000 petitioners warned frozen thresholds are pulling more retirees into tax.
- Pensions Minister Torsten Bell rejected a Parliamentary petition signed by more than 120,000 people calling for the state pensioner personal allowance to rise to £25,140 following a Westminster Hall debate.
- Campaigners argue that while state pension payments rise annually via the triple lock, the HMRC personal allowance has remained frozen at £12,570 since 2021, dragging more retirees into the tax system.
- During the debate, Conservative MP John Lamont noted approximately 8.8 million pensioners now pay income tax, with MPs warning that frozen thresholds mean "the tax system reaches further into people's incomes each year."
- Bell ruled out the increase, stating that no political party would deliver a doubling of the allowance because it would cost the Treasury billions of pounds annually, prioritizing the triple lock instead.
- The Institute for Fiscal Studies warned that by 2027/28, the full state pension is expected to exceed the personal allowance, with forecasts suggesting 9.3 million retirees could pay income tax by 2030.
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12 Articles
The Herald Scotland+10 Reposted by 10 other sources
HMRC personal allowance changes for pensioners debated by MPs in parliament
Pressure is mounting to increase the HMRC personal allowance after MPs debated whether pensioners should avoid paying tax on their state pension.
·Scotland, United Kingdom
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Total News Sources12
Leaning Left2Leaning Right0Center10Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
L 17%
C 83%
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