Economy

Rachel Reeves under fire as one million more pensioners face tax hit 'buried in small print'

March 4, 2026

The Office for Budget Responsibility projects that by the 2030-31 fiscal year, around one million additional pensioners will be subject to income tax due to the interaction of frozen tax thresholds and the triple lock on state pensions. Specifically, 600,000 more pensioners will be affected from the 2026-27 financial year, as the state pension is expected to exceed the personal allowance threshold of £12,570 for the first time in 2027-28.

Rachel Reeves under fire as one million more pensioners face tax hit 'buried in small print'

Credit: Gbnews

Key Highlights

One million more pensioners to face income tax by 2030-31.
600,000 additional pensioners will enter the tax system from 2026-27.
Tax implications arise from frozen income tax thresholds and the triple lock mechanism.
The personal allowance is set at £12,570 until 2031.
The full new state pension will exceed the personal allowance threshold in 2027-28.

Sources

Rachel Reeves under fire as one million more pensioners face tax hit 'buried in small print'

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

Rachel Reeves under fire as one million more pensioners face tax hit 'buried in small print'

Key Highlights

Sources

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