The tax treatment of state pensioners

In April 2027, the Government expects the new state pension rate - currently £12,548 per year - to exceed the income tax threshold, which is £12,570 and frozen until 2030. As a result, someone reliant on the new state pension would begin receiving an annual tax bill from HMRC, estimated at around £88 in 2027/28, rising to £153 in 2028/29 and £220 in 2029/30. In the 2025 Budget, it was announced that, from 2027/28, pensioners solely dependent on the new state pension (or the old basic pension) would not be charged income tax, even if their income exceeds the threshold. However, new LCP research...