Budget Media Watch: Healey to raise tax-free allowance for low-income state pensioners

In the Autumn Budget, Healey is expected to confirm that the state pension will rise to £13,036, pushing it above the £12,570 income tax personal allowance threshold, according to the report. Should no action be taken, this would mean that state pensioners would be liable for income tax. However, under Healey's plans, the tax-free threshold for low-income pensioners is expected to rise in line with state pension increases. Individuals with private pensions would still pay income tax. Former chancellor Rachel Reeves announced, in her 2025 Budget, that measures would be taken to shie...