Pensioners and workers on the minimum wage are being sucked into paying income tax by a freeze on tax thresholds , a think-tank has warned.

The freeze on thresholds – seen as a form of ‘stealth tax’ – will mean that by 2027, everyone receiving the new state pension will be charged income tax, according to the Institute for Fiscal Studies.

Most income tax and National Insurance contribution thresholds were frozen under the previous Conservative government in April 2023, with the freeze currently set to expire in 2028. New Feature

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While Rachel Reeves said in last year’s Budget that she had opted against extending the freeze because it would “hurt working people,” she is widely expected to U-turn on that decision in the Budget in two

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