HMRC to refund 3.2 million pensioners £19m after overtaxing them on state pension for over 15 years

From the Newshound archive · first published 19 September 2026.

HM Revenue and Customs is to hand back an estimated £19 million to 3.2 million retirees after overtaxing them on their state pension since 2010, with refunds averaging just £6 per person backdated to the 2020-21 tax year. The blunder saw pensioners taxed on 52 weeks at the elevated annual rate rather than the correct 51. HMRC chief executive John-Paul Marks has confirmed the repayments but refused to cover the full period, telling MPs that pensioners who believe they were overcharged before 2020 must provide their own evidence.

From Sunday, pensioners will face a new £33-a-month charge as the state pension rises above the personal allowance threshold.

Labour's promised tax 'amnesty' for vulnerable retirees will reportedly benefit only one in 16 state pensioners, according to analysis by consultancy firm LCP.

Pensions Minister Torsten Bell says further details on protecting low-income retirees from tax will be set out by Chancellor John Healey at the Budget.