The prospect could happen because the personal allowance \u2013 the level at which income becomes taxable \u2013 is stuck at \u00a312,570 at least until 2028.<\/p>\n
But the state pension<\/a>, which pays 12.9 million men and women over the age of 66 up to \u00a311,973 a year, is on track to breach that limit before then because of higher-than-expected growth in wages \u2013 especially in the public sector.<\/p>\n Under the triple-lock, the state pension<\/a> increases by the rate of inflation, annual earnings growth or 2.5 per cent \u2013 whichever is the highest.<\/p>\n The Mail on Sunday<\/a> reported that if average earnings continue to grow at their current rate of 5.2% next year’s state pension<\/a> will rise above the income tax threshold for the first time since it was introduced more than a century ago.<\/p>\n This will force pensioners who rely entirely on the state pension<\/a> to pay the basic tax rate of 20% on any amount above the personal allowance limit.<\/p>\n The exact figure will be confirmed later this year.<\/p>\n Shadow Chancellor Sir Mel Stride said: \u201cLabour have shown where their priorities lie. Last winter, they deprived millions of vulnerable pensioners of their winter fuel payments.<\/p>\n \u201cNext year they will start taxing people who rely on the state pension<\/a> as their only income in retirement.\u201d<\/p>\n He added: \u201cAt the election last year the Conservatives<\/a> promised to protect the state pension<\/a> from being dragged into tax \u2013 Labour chose not to match that commitment.<\/p>\n