Chancellor John Healey is expected to use Wednesday's Budget to stop close to a million pensioners on the lowest incomes from paying income tax, GB News reports.
Under the triple lock, the full new state pension will rise by 3.9 per cent to £13,036.40 a year from April 2027, which would take it above the standard £12,570 personal allowance. The tax-free allowance for pensioners whose only income is the state pension will be raised to the same level and is expected to keep rising with the pension for the rest of the parliament. The Treasury puts the cost at about £200m a year by the end of the decade.
People with private or workplace pensions will still pay tax above the threshold. Mr Healey is also said to have dropped any plan to cut the tax-free pension lump sum.
Source: GB News
