UK Chancellor Healy is set to announce in this week’s budget that the full state pension will rise by £489 to £13,036, a move that would push about 1.0 mln low-income pensioners above the current personal allowance. To preserve the principle that the state pension is non‑taxable, Healy will raise the tax-free threshold for low-income pensioners to £13,036, a measure expected to cost about £200 mln a year by 2030. The threshold will increase in line with state pension upratings during this Parlia

UK Chancellor Healy is set to announce in this week’s budget that the full state pension will rise by £489 to £13,036, a move that would push about 1.0 mln low-income pensioners above the current personal allowance. To preserve the principle that the state pension is non‑taxable, Healy will raise the tax-free threshold for low-income pensioners to £13,036, a measure expected to cost about £200 mln a year by 2030. The threshold will increase in line with state pension upratings during this Parliament, but millions of higher‑income pensioners will still face income tax.