Rachel Reeves’s second Budget saw a freeze to income tax thresholds, as well as confirmation of a state pension increase, meaning 10 million retirees are set to pay income tax on their state pension by 2030.

A longer-than-expected freeze in the tax-free personal allowance – to 2030/31 – is likely to result in even more pensioners being brought into the tax net than expected.

Currently, around 8.7 million pensioners pay income tax. Even though the state pension age will rise from 66 to 67 over the next two years, the number of pensioners paying income tax will rise to at least 9.3 million in 2029/30, according to analysis from consultancy firm LCP. New Feature

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But, an extra year of thresholds being frozen makes it highly likely that 1

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