Budget 26: State pensioners to be shielded from income tax

The tax allowance decision comes as the state pension is due to rise to £13,036 from April 2027, pushing it above the £12,570 income tax personal allowance threshold. Aegon head of pensions Kate Smith noted this is welcome news for "some of the lowest-income pensioners". She added: "However, we are now in a position where we have division not only between those on the new and old state pension, but also between those pensioners who have managed to build up additional pension savings – however large or small - and those who have not." The decision was widely expected following a rep...