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<\/p>\nAround 600,000 more over-65s set to be impacted by controversial tax rules<\/p>\n
15:11, 07 May 2026Updated 17:33, 07 May 2026<\/p>\n
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Critics claim the policy is unfair.(Image: Anadolu via Getty Images)<\/p>\n
Hundreds of thousands more state pensioners will lose money because of a controversial rule kept in place by Rachel Reeves.<\/p>\n
Experts claim in some cases it will essentially cancel out annual triple lock increases.<\/p>\n
The issue is caused by frozen tax bands, which have been kept at the same level since 2021.<\/p>\n
READ MORE: Ofsted inspectors blown away as they hand Midlands school new ‘exceptional’ ratings<\/a><\/strong><\/p>\n Get the latest court and crime news direct via our WhatsApp community here<\/a><\/strong><\/p>\n The state pension has risen by thousands of pounds over that time under triple lock rules, dragging more over-65s into income tax territory.<\/p>\n While those who only receive the state pension don’t currently have to pay, it only takes a modest private pension or small amount of interest from savings to pass the \u00a312,570 threshold.<\/p>\n The triple lock ensures the state pension increases each year to match whatever is highest out of inflation, wage growth or 2.5%. But it’s pushing more retirees past the income tax threshold.<\/p>\n This is known as fiscal drag, as the Government makes more in tax without having to formally announce increases. Critics have labelled it a stealth tax.<\/p>\n READ MORE:<\/strong> The Birmingham streets where yobs run riot and make residents’ lives a misery<\/a><\/strong><\/p>\n