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State pensioners with no other income will not pay tax
Chancellor Rachel Reeves pledges no income tax on state pensions this parliament despite frozen thresholds raising £7.6 billion by 2030 from higher tax bands.
- Chancellor Rachel Reeves pledged state pensioners will not pay income tax in this Parliament and told Martin Lewis they won’t need to fill in a tax return if they have only a state pension.
- The Treasury froze income tax thresholds until the 2030–31 tax year, raising £7.6bn and funding a £26bn package that includes welfare spending and abolishes the two-child benefit cap.
- Anyone solely receiving the new flat-rate state pension will get £12,547.60 next year, just below the £12,570 personal tax allowance, but it is projected to exceed this in the 2027/28 tax year.
- About three-quarters of pensioners already pay income tax, including 2.5 million on the pre-2016 system, with Webb warning of administrative headaches collecting small sums.
- Reeves cautioned that Budget documents contain no costing for this policy, and officials say designing a fair system will be difficult; she added, 'In this parliament, they won't have to pay the tax'.
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Total News Sources8
Leaning Left1Leaning Right3Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
13%
C 50%
R 37%
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