At least half a million more pensioners will be dragged into paying income tax if the Chancellor extends the freeze on income tax thresholds at this week’s Budget, analysis shows.

The earnings threshold at which workers and pensioners begin paying income tax has been frozen at £12,570 since 2022, meaning as pensions and wages have increased, more people have owed income tax.

The freeze is due to end in 2028, but earlier this month, Sir Keir Starmer refused to rule out extending it.

People who get the full new state pension alone currently do not pay income tax, as it sits at roughly £11,973 per year. New Feature

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But the state pension triple lock ensures payments rise by the highest of either inflation , wage growth or 2.5 per cent

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