By April 2027, anyone receiving the full State Pension will cross the income tax threshold (Image: andresr via Getty Images)

Pensioners are bracing for a hidden tax squeeze following the Chancellor's confirmation of a 4.8% increase in the State Pension from April next year. The rise, prompted by the government's "triple lock," policy, will push the full new State Pension to £12,548 annually – just £22 shy of the current personal allowance, leading many retirees to pay income tax for the first time.

Experts have cautioned that the freeze on income tax thresholds until 2031 will allow this stealth tax to further erode pensioners' incomes. By April 2027, anyone receiving the full State Pension will surpass the income tax threshold, making them liable for tax on money they currently receiv

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