Overview
- The Treasury’s revised response confirms it will not introduce a Pension Tax Lock, despite a petition with more than 22,000 signatures, citing ongoing Budget reviews and the £78 billion cost of pensions tax relief in 2023/24.
- Chancellor Rachel Reeves has assured that people whose sole income is the state pension will not pay income tax on it during this Parliament, with experts warning delivery details and fairness questions still need resolving.
- The state pension will rise by 4.8% in April 2026 to about £241.30 a week (£12,547.60 a year), taking it very close to the £12,570 personal allowance and heightening warnings of tax exposure from 2027 if thresholds remain frozen.
- Pensions Minister Torsten Bell has kept automatic enrolment thresholds unchanged for 2026/27—the £10,000 trigger and £6,240–£50,270 band—leading analysts to flag “pensions fiscal drag” that could squeeze take‑home pay, especially for lower earners.
- The DWP says some state pension payments will arrive early over Christmas and New Year, while 2026–27 rollouts include pensions dashboards from October 2026, the opening of CDC schemes in late 2026, and new inheritance tax treatment of pension pots from April 2027.