Chancellor John Healey is expected to shield nearly one million low-income pensioners from income tax in Wednesday's Budget
John Healey, who resigned as Chancellor in June demanding Britain reach 3% of GDP on defence by 2030, now says the timetable will wait for next year's spending review.
Chancellor John Healey is expected to lift the tax-free allowance to £13,036 for people living solely on the state pension. Without the change, a £489 rise from April would push them past the £12,570 threshold, frozen since 2021. The measure is expected to cover nearly a million retirees. Healey is due to set out the details in Wednesday's Budget.
Former pensions minister Steve Webb calls the plan 'messy and increasingly expensive'.
Older pensioners on the pre-2016 basic state pension could be excluded, creating a 'two tier' system.
Standard Life says the relief could be worth £770 a year by 2031.
