Should the state pension be exempt from income tax, even for pensioners with other income?
The state pension is taxable income, but the full new state pension (£12,548 a year in 2026/27) sits just below the frozen £12,570 personal allowance, so pensioners relying on it alone pay no tax. The triple lock is expected to lift it above the allowance from April 2027. The Treasury has promised that anyone whose only income is the full new or basic state pension will not pay income tax this Parliament. Critics say this would help only about one in 17 pensioners, and the Chancellor is expected to set out how it will work in the 28 October Budget.
3 Opinions
We must pay our income tax, if you were canny enough to obtain a large work pension, you still need to pay your income tax, it's taken for a purpose.
No, there's no need for more giveaways for pensioners. They can pay tax if they have other income.
The State Pension is income, pure and simple. It has no impact on those with no other income in practice and pensioners get significant other support on travel, healthcare and likely much lower costs that the same income group doesn’t. NI should also be paid. The same group who rail against something for nothing want that treatment at pension age. Consistency is key