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The government has issued a statement amid concerns that many state pensioners will be pushed into paying income tax for the first time in April when rates increase.

Personal allowance - the income you don't pay any tax on - is frozen at £12,570 until 2028, but as state pension rates go up, more retirees might see themselves pulled into the tax net each year.

In a statement issued yesterday, the government confirmed that the basic and full new State Pension will not be taxed in the 2025/26 financial year.

Freddie van Mierlo, Liberal Democrat MP for Henley and Thame, submitted a written question to the chancellor asking "what assessment she has made of the potential impact of keeping the personal allowance at £12,570 on pensioners’ tax liability".

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