When Chancellor Rachel Reeves froze the tax thresholds for another three years until 2031 in last week’s Budget, it didn’t take long for finance experts to point out that this meant state pensioners will pay tax from 2027.

Only they will not – because a day later, Reeves said that the Treasury would work out a mechanism to exempt them.

This is obviously good news for pensioners. With the state pension rising to £12,547.60 a year from next April, it will be just below the personal allowance of £12,570. With the triple lock, it was sure to go beyond this threshold of when people start paying tax, which will not change for another five years. New Feature

In Short

Quick Stories. Same trusted journalism.

With this exemption and the triple lock – which raises pensions by the higher of in

See Full Page