His comments came in a written response<\/a> to Labour MP Euan Stainbank who asked whether the Labour Government plans to extend the income tax exemption to older people with private pensions “who receive the same income as those who solely receive the maximum State Pension\u201d.<\/p>\n Chancellor Rachel reeves announced in November that the Personal Allowance<\/a> will remain frozen at \u00a312,570 until April 2031.<\/p>\n READ MORE: Nearly half a million State Pensioners missing out on higher payments this year<\/a>READ MORE: New and Basic weekly State Pension payment rates in 2026<\/a><\/p>\n Mr Bell said the State Pension is the \u201cfoundation\u201d of the support available to people in retirement adding that over the course of this Parliament, the yearly amount of the full New State Pension is on track to go up by around \u00a32,100.<\/p>\n He continued: “When it comes to taxes, social security benefits are treated differently depending on why they are paid. Generally, benefits that replace income, like the State Pension, are taxable.<\/p>\n \u201cHowever, I can confirm that those whose sole income is the basic and full new State Pension, without any increments, will not pay any income tax this tax year or next. Furthermore, the Chancellor has said that those whose only income is the Basic or New State Pension without any increments will not have to pay income tax over this Parliament.\u201d<\/p>\n The DWP explained the UK Government will achieve this by \u201ceasing the administrative burden\u201d for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027\/28. More details on this will be announced \u201cin due course\u201d.<\/p>\n The full New State Pension is now worth \u00a3241.30 per week, while those on the maximum Basic State Pension will receive \u00a3184.90 every week.<\/p>\n It\u2019s important to remember that the amount of State Pension someone receives depends on their National Insurance contributions. To receive the full New State Pension you need around 35 years\u2019 worth, but this may differ if you were \u2018contracted out\u2019.<\/a><\/p>\n The full New State Pension will increase by around \u00a3574 to \u00a312,547 over the 2026\/27 financial year.<\/p>\n The Personal Allowance will remain frozen at \u00a312,570 until April 2031.(Image: Getty)<\/p>\n New State Pension payment rates 2026\/27<\/p>\n Full New State Pension<\/strong><\/p>\n Full Basic State Pension<\/strong><\/p>\n Other State Pension rates<\/strong><\/p>\n Full details on Additional State Pension, Widows Pension, increments and Invalidity Allowance can be found on GOV.UK.<\/a><\/p>\n State Pension and tax<\/p>\n Guidance on GOV.UK<\/a> states: \u201cYou pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates.<\/p>\n Your total income could include:<\/strong><\/p>\n Check if you have to pay tax on your pension<\/p>\n Before you can check, you will need to know:<\/p>\n You cannot use this tool if you get:<\/strong><\/p>\n Use this online tool at GOV.UK<\/a> to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on GOV.UK here.<\/a><\/p>\n Join the conversation on our Money Saving Scotland Facebook group<\/a> for money-saving tips, the latest State Pension and benefits news, energy bill advice and cost of living updates.<\/p>\n Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday with a special cost of living edition every Thursday – sign up here<\/a>.<\/p>\n You can also follow us on X<\/strong> (formerly Twitter) @Recordmoney_<\/a> for regular updates throughout the day or get money news alerts on your phone by joining our Daily Record Money WhatsApp community<\/a>.<\/p>\n![\"A](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/05\/1_State-pension-tax-allowance-1.jpg\")
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