Treasury gives state pension tax exemption £12,570 update as backing soars

Treasury gives state pension tax exemption £12,570 update as backing soars View Image

The Treasury has responded to a petition demanding the Government grant pensioners special dispensation to shield the lowest earners from increased tax liabilities. The Parliamentary petition is urging Chancellor Rachel Reeves to establish a dedicated tax code for pensioners that would effectively double their personal allowance threshold.

Last month, Ms Reeves confirmed the freeze on the lowest income tax threshold of £12,570 until 2031 - a decision that means those receiving only the new State Pension will begin paying tax on it from 2027 onwards, courtesy of the triple lock mechanism. The petition, accessible here , has rapidly gathered 25,000 signatures - prompting an official Treasury statement