‘Unfair’ rules leaving more pensioners facing income tax bill
There is anger over frozen tax bands.
Pensioners with small private pensions could face a tax bill from HMRC.
It comes amid growing frustration over frozen tax bands, which are seeing more pensioners being dragged into paying income tax.
The personal allowance – the amount when people start paying income tax – has stayed frozen at £12,570 since 2021.
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But state pension payments have continued to rise each year, pushing millions towards or over that threshold.
While the state pension alone isn’t enough to pass the £12,570 mark, just a small private pension or other forms of income can take households past that total.
And that’s exactly what is happening to thousands more seniors every year, with campaigners blasting the system as unfair.
The state pension could rise by as much as £550 next year, pushing more people towards paying tax.
Tax bands are currently due to stay frozen until 2028.
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Conservative leader Kemi Badenoch has accused Labour of placing a “retirement tax” on pensioners.
She said recently: “Under Labour, millions of our poorest pensioners face being dragged into income tax for the first time ever.
“Does the Prime Minister think it is right that struggling pensioners should face a retirement tax?”
Keir Starmer said in response: “We will stick to our manifesto commitments, we will stick to our fiscal rules.
“This is a language they (the Conservatives) don’t understand. That’s what got us into the problem in the first place.”
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