News

The full new state pension is set to increase by £561.60 a year from April

Millions could find themselves paying income tax on their state pension for the first time, as frozen tax thresholds clash with the latest triple lock increase.

This financial pinch is a result of the Conservative Government's decision to freeze the personal allowance before people pay tax in 2021.

The figure was set at £12,570 until 2028 under a policy later adopted by Rachel Reeves. The rise in the state pension in April 2026 is driven by the government's triple lock formula, which ensures pensions increase by the highest of inflation, wage growth or 2.5%.

This formula means the full new state pension is set to rise by £561.60 annually from April, bringing the yearly payout to £12,534.60 – just £35 shy o

See Full Page