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A state pension hike will leave 400,000 just £22 from paying income tax for first time. HMRC is set to punish state pensioners who breach the personal tax free allowance next year as the Department for Work and Pensions ( DWP ) Triple Lock rises.

The state pension is likely to be increased in line with wage growth figures, under the triple lock agreement. The projected figure means that the state pension is set to rise by 4.8 per cent next April – up from the previous estimate of 4.7 per cent.

It means those on the new state pension will receive £12,547.60 annually, an increase of £574.60, putting them just £22.40 away from hitting the personal tax allowance.

READ MORE State pensioners getting second £200 payment on top of Winter Fuel Allowance

This has been frozen at £12

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