State Pension Increase Offset by Stealth Taxes and Frozen Thresholds

The recent 8.5% rise in state pensions is largely nullified for many by frozen tax thresholds and the exclusion of certain retirees living abroad.

Stealth taxes are expected to erase more than three-quarters of the state pension increase for the average pensioner paying basic rate tax, due to a freeze in the personal allowance.
About eight million pensioners, or 70% of taxpayers, will not benefit from the recent cut in National Insurance as they are already exempt, exacerbating the impact of frozen tax thresholds.
Nearly 500,000 retirees living abroad in countries without reciprocal agreements will not receive the state pension increase, highlighting the issue of 'frozen' pensions.
The triple lock policy, guaranteeing the state pension increase, is defended by government officials amid concerns over its long-term affordability.
Opposition parties criticize the government's approach, accusing it of undermining the financial security of pensioners during a cost of living crisis.