The full state pension is expected to rise above the £12,570 personal tax allowance in April. Healey plans to explain in Wednesday’s Budget how a new allowance would protect people whose only income is the state pension.
UK Chancellor John Healey plans to set out a new tax allowance for low-income pensioners in Wednesday’s Budget, the BBC said on 26 October. The proposal is intended to fulfil the UK government’s earlier pledge not to tax people whose only income is the state pension. It has not yet been announced as a Budget measure.
The full, flat-rate state pension is expected to rise by 3.9% to £13,036.40 a year from April. That would put it above the £12,570 personal tax allowance—the amount someone can receive before income tax applies. Without a change, someone whose only income is the full state pension would become liable for income tax.
Healey’s allies say the plan would spare pensioners the administrative work of paying a small amount of tax. The UK Treasury has not confirmed who would qualify or how many pensioners would be affected. Healey is due to deliver his Budget speech on Wednesday.
The government plans a 26 November start for suspensions covering 101 food and agricultural products, including garlic, gherkins and plant-based milk.
3 min
The Budget preserves the £20,000 annual cash ISA allowance and proposes a 24% rate on savings and rental income for basic-rate taxpayers from April 2027.
2 min
Under the announced Your First Home terms, eligible first-time buyers purchasing qualifying new-build homes in England can seek a 20% equity loan with a deposit from 2.5%. Applications are scheduled to open in February 2027.
4 min
