![\"Pensions](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/1_Torsten-Bell.jpg\")
Pensions minister Torsten Bell gave an update about the tax-free allowance for state pensioners(Image: Getty)<\/p>\nThe personal allowance is frozen at its current level<\/p>\n
11:15, 10 Apr 2025Updated 14:38, 10 Apr 2025<\/p>\n
Pensions minister Torsten Bell gave an update about the tax-free allowance for state pensioners(Image: Getty)<\/p>\n
Labour had shed light on its policy regarding the personal tax allowance for state pensioners. The update came in response to a question in Parliament from Conservative MP, Sir Ashley Fox.<\/p>\n
He asked the DWP<\/a> about potentially aligning the allowance to the rising state pension rates. Offering a response, pensions<\/a> minister Torsten Bell said: “Currently the personal allowance, which is the amount an individual can earn before paying tax, is higher than the full rates of both the basic and new state pensions.<\/p>\n “This means pensioners whose income is solely the full new state pension or basic state pension will not pay any income tax.” The personal allowance stands at \u00a312,570 a year meaning you can earn up to this limit with no income tax to pay.<\/p>\n READ MORE: DWP PIP policy ‘doesn’t reflect reality’ as claimants face extra \u00a3900 in bills<\/a><\/p>\n After the 4.1% hike in state pension payments this month, the full new state pension is now \u00a3230.25 a week, or \u00a311,973 per annum – only \u00a3600 under the taxable threshold. The full basic state pension pays \u00a3176.45 per week, or \u00a39,175.40 yearly, under the limit by some \u00a33,400.<\/p>\n Mr Bell mentioned some tax changes coming up: “The previous Government made the decision to freeze the income tax Personal Allowance at its current level of \u00a312,570 until April 2028. At our first Budget<\/a>, we decided not to extend the freeze on personal tax thresholds.<\/p>\n The pensions minister also shared figures that show over 80% of pensioners were subject to income tax in the tax year 2022\/2023. He also said in his reply: “This Government is absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.<\/p>\n “Over 12 million pensioners will benefit from our commitment to protect the triple lock which is set to increase spending on the state pension by around \u00a331billion and will increase people’s yearly state pensions by up to \u00a31,900 this Parliament.”<\/p>\n Thanks to the triple lock mechanism, state pension payments go up each April based on whichever of these three factors is higher – 2.5%, the rise in average earnings, or inflation. This month, there was a 4.1% hike based on the average earnings figure.<\/p>\n Get the latest DWP news from Mirror Money<\/p>\n WHATSAPP GROUP: <\/strong>Get money news and top deals straight to your phone by joining our Money WhatsApp group here<\/a>. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don\u2019t like our community, you can check out any time you like. If you\u2019re curious, you can read our Privacy Notice<\/a>.<\/p>\n![\"A](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/0_Payment-3.jpg\")
State pension payments increased 4.1% this month(Image: Getty)<\/p>\n