The government of the United Kingdom (UK) is committed to protect the dignity and security of the pensioners. For the past few days, there have been long discussions about the probable benefits the pensioners can receive in the near future. It is reported by the UK media houses that the government can consider to increase the personal benefits of the pensioners. The upcoming parliament session will be very crucial for those who are solely dependent on the pension system. In a recent significant development,
Government comments on the topic
Lib Dem MP Dr Al Pinkerton raised a query about the potential merits of increasing the Personal Allowance for those over the State Pension age. In reply, Treasury Minister Dan Tomlinson has assured that they are working in the favor of the pensioners.
The Treasury Minister stated, “Through our commitment to protect the Triple Lock, over 12 million pensioners benefitted from a 4.1 per cent increase to their Basic or New State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.”
To assist the pensioners who are totally dependent on the amount of pension, they can receive a special facility from the UK government. The government is thinking to make the amount absolutely income tax free.
Government thinking to make the amount income tax free
“The Personal Allowance – the amount an individual can earn before paying tax – will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax”, Treasury Minister Dan Tomlinson said.
Decisions on pension in UK are relying on Triple Lock system for both new and basic state pensioners. Average annual earnings growth from May to July (4.8%), the CPI inflation rate in the year to September (3.8%), or 2.5 per cent are the parameters to secure the amount of renewed pension amount.