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State pensioners are being warned some will be unfairly allowed to escape HMRC bills under a rule change. Pensions expert Tom McPhail condemned the approach from the Labour Party government as "means-testing by proxy".

"The government is not doing this because it makes fiscal or practical sense, or is fair or sensible: it is doing it because it is so frightened of crossing that totemic threshold of pensioners paying income tax on the state pension because they decided to freeze it," McPhail said.

The shake-up means retirees relying only the state pension are set to avoid income tax even when payments exceed the frozen £12,570 personal allowance threshold from April 2027 onwards.

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The full state pension rises

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