Overview
- The phased increase from age 66 to 67 is being implemented now, with the latest tranche affecting people born between 6 July and 5 August 1960 and the timetable running through April 2028.
- HMRC has confirmed the State Pension has always been taxable and that the DWP does not deduct tax at source, so HMRC adjusts recipients' tax codes to reflect the personal allowance.
- Chancellor Rachel Reeves announced a targeted exemption so people whose only income is the State Pension will not pay tax on DWP payments from April 2027, but the government has not yet set out operational details.
- Analysts warn the triple‑lock upratings are projected to push the full new State Pension toward or above the £12,570 personal allowance, creating fiscal drag that could make more pensioners liable for income tax and prompt checks on Pension Credit eligibility.
- Practical knock‑on effects are being applied now: free bus‑pass eligibility in England will follow the raised pension age, minimum National Insurance year rules still block some from any State Pension, and the SSAC has opened a review of benefits for people in their 60s.