{"id":379066,"date":"2025-08-28T01:21:17","date_gmt":"2025-08-28T01:21:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/379066\/"},"modified":"2025-08-28T01:21:17","modified_gmt":"2025-08-28T01:21:17","slug":"hmrc-punishing-state-pensioners-with-small-private-pensions","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/379066\/","title":{"rendered":"HMRC &#8216;punishing&#8217; state pensioners with small private pensions"},"content":{"rendered":"<p>&#8216;Unfair&#8217; rules leaving more pensioners facing income tax bill<img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/1756344077_264_0_pensioners2.jpg\" alt=\"State pensioners can boost state pension by \u00a310,000 - and 17,000 people have already\" loading=\"eager\"  \/>There is anger over frozen tax bands.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Pensioners with small private pensions could face a tax bill from HMRC.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">It comes amid growing frustration over frozen tax bands, which are seeing more pensioners being dragged into paying income tax.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">The personal allowance &#8211; the amount when people start paying income tax &#8211; has stayed frozen at \u00a312,570 since 2021.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\"><strong class=\"Strong_strong__e2x35\">READ MORE: <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/news\/money\/lloyds-become-first-uk-bank-32340901\" target=\"_self\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\">Lloyds to become first UK bank to introduce \u00a3300 rule from Tuesday<\/a><\/strong><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\"><a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/newsletter-preference-centre\/?view=Solus&amp;mailingListId=3d4ffd46-bda0-4cd0-b915-62c991cdadff&amp;utm_source=solusarticle\" target=\"_blank\" aria-label=\"[object Object]Link opens in a new tab.\" tabindex=\"0\" rel=\"noopener\"><strong class=\"Strong_strong__e2x35\">Get our best money saving tips and hacks by signing up to our newsletter<\/strong><\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">But state pension payments have continued to rise each year, pushing millions towards or over that threshold.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">While the state pension alone isn&#8217;t enough to pass the \u00a312,570 mark, just a small private pension or other forms of income can take households past that total.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">And that&#8217;s exactly what is happening to thousands more seniors every year, with campaigners blasting the system as unfair.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">The state pension could rise by as much as \u00a3550 next year, pushing more people towards paying tax.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Tax bands are currently due to stay frozen until 2028.<\/p>\n<p>Breaking news straight to your WhatsApp<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">BirminghamLive readers get the very latest breaking news through <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/chat.whatsapp.com\/FJKVhwxllixI0DiCj9e2sk\" target=\"\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\">our WhatsApp community<\/a>.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">All you have to do is <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/chat.whatsapp.com\/FJKVhwxllixI0DiCj9e2sk\" target=\"\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\">click this link<\/a> and select &#8216;Join Chat&#8217; and you are in.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">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 by selecting &#8216;exit group&#8217;.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\"><a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/chat.whatsapp.com\/FJKVhwxllixI0DiCj9e2sk\" target=\"\" aria-label=\"\" tabindex=\"0\" rel=\"noopener\">CLICK HERE TO JOIN<\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Conservative leader Kemi Badenoch has accused Labour of placing a &#8220;retirement tax&#8221; on pensioners.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">She said recently: &#8220;Under Labour, millions of our poorest pensioners face being dragged into income tax for the first time ever.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">&#8220;Does the Prime Minister think it is right that struggling pensioners should face a retirement tax?&#8221;<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Keir Starmer said in response: &#8220;We will stick to our manifesto commitments, we will stick to our fiscal rules.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">&#8220;This is a language they (the Conservatives) don&#8217;t understand. That&#8217;s what got us into the problem in the first place.&#8221;<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\"><a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/whats-on\/join-free-money-saving-whatsapp-31225019\" target=\"_blank\" aria-label=\"[object Object]Link opens in a new tab.\" tabindex=\"0\" rel=\"noopener\"><strong class=\"Strong_strong__e2x35\">Join our Free Money Saving WhatsApp community for the latest updates<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"&#8216;Unfair&#8217; rules leaving more pensioners facing income tax billThere is anger over frozen tax bands. Pensioners with small&hellip;\n","protected":false},"author":2,"featured_media":379067,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,527,474,1016,528,2074,2499,16,15,961],"class_list":{"0":"post-379066","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-conservative-party","10":"tag-finance","11":"tag-hmrc","12":"tag-labour-party","13":"tag-pension","14":"tag-personal-finance","15":"tag-uk","16":"tag-united-kingdom","17":"tag-your-money"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115103773056860102","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/379066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=379066"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/379066\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/379067"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=379066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=379066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=379066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}