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.
