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State Pension Expected to Rise by £488 a Year – but Millions Face Tax Warning
- Millions of pensioners face potential tax bills next year as the new state pension is set to rise 3.9 per cent, pushing the standard rate above the £12,570 personal tax allowance for the first time.
- The Government's triple lock formula triggers the highest of wage growth, inflation, or 2.5%, and latest earnings figures showing 3.9 per cent growth will likely determine the April increase.
- Recipients can expect an annual increase of nearly £500, raising payments to around £250.70 weekly; those wholly dependent on the pension could face an income tax bill of around £91.40.
- Analysis from LCP suggests proposed tax exemptions may only help one in 16 pensioners, and Work and Pensions Secretary Pat McFadden faces scrutiny as the Government has not yet explained how the exemption will function.
- The final triple lock figure remains unconfirmed until October when September CPI is published; while The Bank of England forecasts inflation around 3.2 per cent, earnings growth currently remains the primary driver.
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State pension tax GUARANTEED as Labour urged to introduce 'amnesty' for retirees
State pension payments alone are more or less guaranteed to pay be liable for income tax for the first time, analysts warn.Recipients of the full new state pension are on course to be dragged into the levy's net, as official earnings figures point towards a triple lock increase of close to £500 annually from next April.Office for National Statistics (ONS) data released this week showed total wage growth, bonuses included, running at 3.9 per cent…
·London, United Kingdom
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Total News Sources48
Leaning Left4Leaning Right3Center28Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
11%
C 80%
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