Rachel Reeves is expected to keep income tax thresholds frozen in next week’s Budget in a bid to rake in more money for the Treasury – a move that risks leaving large numbers of state pensioners paying income tax for the first time.
The Institute of Fiscal Studies (IFS) has warned that, without an exemption in place, millions of pensioners on low incomes will be forced to pay tax on their state pension from 2027.
Thabhani Sithole, 76, is one such pensioner concerned, saying it “worries her a lot.”
Thabhani, who lives in London with her daughter, receives £425 from the state pension each month and also receives £208 in pension credit each week and £295 a month for attendance allowance.
She worked part-time as a critical care nurse via agencies in hospitals for 22 years, before ret

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