Full state pension will rise to £13,036 next April, pushing it past the frozen tax-free allowance for the first time
Pensioners face an income tax bill for the first time as the full new state pension rises to £250.70 a week — above the frozen personal allowance — with Chancellor John Healey expected to confirm the rates at the Budget…
September's wage growth of 3.9% outpaced inflation of 3.5%, triggering a £489-a-year increase for recipients of the full new state pension. The weekly rate will climb to £250.70, bringing the annual figure to £13,036 — which for the first time pushes it above the £12,570 personal allowance. Ministers have pledged that pensioners whose sole income is the state pension will not face a tax bill, though no mechanism has been announced. Chancellor John Healey is expected to set out that detail in the Budget on 28 October.
Prime Minister Andy Burnham plans to scrap the triple lock from April 2030.
Kemi Badenoch attacked Burnham's proposal to erode the state pension's value by 2030.
AJ Bell's Rachel Vahey says the frozen allowance is left 'trailing in its wake'.
