Overview
- New and Basic State Pensions increase by 4.8% from 6 April 2026, taking the full new rate to £241.30 a week (about £12,547 a year) and the full basic rate to £184.90.
- Pensions Minister Torsten Bell confirmed that people whose only income is the Basic or full New State Pension, without increments, will not pay income tax this year or over this Parliament.
- The personal allowance remains frozen at £12,570 until April 2031, leaving roughly £36 of headroom for those on the full new rate before tax applies to any additional income.
- The government says HMRC will ease the burden of small Simple Assessment bills for pensioners from 2027/28, with further details to be announced.
- Eligible retirees can boost tax-free income using Marriage Allowance and savings allowances, with some able to receive up to about £18,570 without paying income tax.