Overview
- The Treasury has pledged this Parliament that anyone whose only income is the full new or basic State Pension will not pay income tax and HMRC says it will lay legislation in Parliament to deliver the promise.
- The full new State Pension currently pays £241.30 a week (£12,547.60 a year), which sits just below the £12,570 personal allowance and is projected to breach that threshold under the Triple Lock from April 2027.
- Ministers plan administrative changes so affected pensioners will not be forced into Self Assessment tax returns if uprating pushes their state pension above the allowance.
- Critics, including the Resolution Foundation and senior advisers, warn the Triple Lock has produced unusually large increases in recent years and is costly to sustain, urging reform or a switch to a smoothed earnings link.
- Separately, Pensions UK and academic updates show many households lack enough private pension savings for a comfortable retirement, which shapes the debate over how much the state pension should cover and what reforms would mean for future retirees.