{"id":498478,"date":"2025-10-14T09:47:10","date_gmt":"2025-10-14T09:47:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/498478\/"},"modified":"2025-10-14T09:47:10","modified_gmt":"2025-10-14T09:47:10","slug":"double-personal-allowance-update-for-pensioners-over-unfair-system-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/498478\/","title":{"rendered":"Double personal allowance update for pensioners over ‘unfair’ system | Personal Finance | Finance"},"content":{"rendered":"

Demands are being made that the personal allowance should be doubled<\/a> for those on the state pension. You can earn up to \u00a312,570 without paying income tax<\/a> in line with the personal allowance. If this was doubled, state pensioners would be able to earn \u00a325,140 a year without paying the tax.<\/p>\n

A new petition to Parliament reads: “We want the Government to introduce a new tax code for state pensioners, set at double the basic threshold. If this was implemented, pensioners would receive a higher tax-exempt limit, but wealthier pensioners would still pay tax.”<\/p>\n

The message criticises the current tax system, stating: “We think that people with small private or workplace pensions are currently being taxed unfairly.”<\/p>\n

At the time of writing, the petition has reached just over 1,000 signatures. If it gets the support of 10,000 people, the Government will have to issue a response. You can add your signature to the petition on the website<\/a>.<\/p>\n

If it reaches 100,000 signatures, the matter will be considered for debate in Parliament. The full new state pension<\/a> is currently \u00a3230.25 a week, or \u00a311,973 a year, only \u00a3600 away from using up the personal allowance.<\/p>\n

As receiving the full new state pension<\/a> could soon attract an income tax bill, there have been calls to increase the allowance or to otherwise make sure the state pension<\/a> is not taxed.<\/p>\n

Another petition to Parliament calling for the state pension<\/a> to be made tax exempt reached over 17,000 signatures. The DWP<\/a> issued a response in September 2025, saying such a move would be “expensive” and would make the tax system more complex.<\/p>\n

The department said: “The Government has no current plans to make the state pension<\/a> tax exempt. When it comes to taxes, social security benefits are treated differently depending on why they are paid.<\/p>\n

“Generally, benefits that replace income, like the state pension<\/a>, are taxable. Exempting the state pension<\/a> from income tax would be expensive at a time when the Government has inherited a very challenging set of fiscal circumstances.”<\/p>\n","protected":false},"excerpt":{"rendered":"Demands are being made that the personal allowance should be doubled for those on the state pension. You…\n","protected":false},"author":2,"featured_media":498479,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,73113,2499,1786,163776,1523,16,15],"class_list":{"0":"post-498478","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-allowance","11":"tag-personal-finance","12":"tag-state-pension","13":"tag-state-pension-income-tax","14":"tag-taxes","15":"tag-uk","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115371890696238655","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/498478","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=498478"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/498478\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/498479"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=498478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=498478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=498478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}