Overview
- Chancellor Rachel Reeves told Martin Lewis that people whose sole income is the state pension will not pay income tax during the current Parliament.
- The commitment also removes Self‑Assessment requirements for these pensioners, with HMRC to implement an administrative solution.
- The pledge lasts only for this Parliament, which is scheduled to run until July 2029 unless an earlier election is called.
- Pensioners with any additional income, such as a private pension or earnings, will still be liable for income tax on that income.
- The full new state pension rises to about £12,548 in April 2025 and is projected to exceed the £12,570 personal allowance around 2027, while tax thresholds remain frozen until 2031 and experts warn liabilities could otherwise grow.