Rachel Reeves DWP tax decision could see more state pensioners get bills There are fears the upcoming state pension increase on April 7 could push more pensioners over the income tax threshold, leading to an increase in the number of them paying tax.
A recent petition has urged the government to raise the income tax threshold to £20,000, stating: "We think this would help low earners to get off benefits and allow pensioners a decent income."
A person receiving the full new state pension, with no other source of income, would not be liable for income tax.
Those who do not pay tax automatically through deductions would receive a tax bill from HMRC the following summer, which must be paid by January of the subsequent year.
However, Chancellor Rachel Reeves announced at the Budget that the personal allowance for tax, which is the amount someone can earn before they pay tax, will stay frozen at £12,570 until the start of the 2028/29 financial year.
