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Healey is set to shield a million poorer pensioners from income tax, but millions with private pensions will STILL pay

John Healey is expected to shield around a million poorer pensioners from income tax by lifting the personal allowance to £13,036, matching a full year's state pension.
John Healey is expected to shield around a million poorer pensioners from income tax by lifting the personal allowance to £13,036, matching a full year's state pension.

The personal allowance for pensioners on lower incomes is expected to be lifted to £13,036, matching exactly one full year's worth of the state pension. Had no action been taken, the triple lock's 3.9% increase would have pushed payments above the existing £12,570 threshold. The adjustment is projected to cost the Treasury as much as £200 million annually by 2030. Healey is also expected to leave the tax-free lump sum cap unchanged at £268,275.

Proposals to cut the lump-sum cap to £100,000 are set to be ruled out in Wednesday's Budget.

MoreThe TelegraphHealey set to shield pensioners from income taxLBCHealey to ensure state pension is not taxed for poorest - with triple lock to hike benefit by 3.9%The TimesPensioners set to be shielded from income tax in budgetBBC'Budget tax reprieve for pensioners' and 'Meghan dad net to widen' - BBCDaily MailWhy is the state pension taxed but Universal Credit payments are not?
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