Chancellor John Healey will protect low-income pensioners from paying income tax in his first Budget, despite the full state pension rising by 3.9% to £13,036.40 annually from April, which exceeds the current personal tax allowance of £12,570. To honour the government's commitment not to tax those relying solely on the state pension, Healey plans to introduce a new tax allowance specifically for low-income pensioners. This measure aims to prevent pensioners from facing administrative burdens over relatively small tax liabilities.
Healey's Budget comes amid alternative proposals from the Conservatives and Reform UK, who advocate for welfare cuts and policies to stimulate job creation. Other parties, including the Liberal Democrats and the Green Party, have called for measures to reduce tax burdens and support energy bill relief. Further details on the number of pensioners affected and the full scope of the Budget are expected upon its official release.
Read the full story: BBC UK News.
Source: BBC UK News. Aggregated summary, not independent reporting.