An online petition is calling on the UK Government to increase the Personal Allowance to £14,000 for everyone over State Pension age, arguing that the current freeze at £12,570 leaves millions of pensioners facing income tax bills.
Petition Details
Petition creator Geoffrey Philip Lawson argues that raising the tax limit to £14,000 would put pensioners on an "equal footing until the end of this Parliament." He also said the UK Government's proposals for those whose sole income is the New State Pension not to pay tax in retirement are “flawed.”
The petition, posted on the Petitions Parliament website, states: "Raise the income tax Personal Allowance from £12,570 to £14,000 to cover the State Pension. This will put all State Pensioners, including older pensioners who have paid into SERPS or the State second pension, on an equal footing until the end of this Parliament."
Impact of Frozen Allowance
The UK Government recently confirmed the Personal Allowance will remain frozen at £12,570 until April 2031. Millions of older people are set to face an income tax bill as the State Pension rises to just £23 below the Personal Allowance in the 2026/27 financial year.
The full New State Pension is worth £12,547 over the 2026/27 financial year following a 4.8 per cent rise under the Triple Lock. This policy guarantees annual increases in line with earnings growth, Consumer Price Index (CPI) inflation rate or 2.5 per cent - whichever is highest.
Government Proposals Criticized
The petition argues that Chancellor Rachel Reeves’ proposals that only those receiving the new State Pension will not face additional tax demands because of the Triple Lock are flawed. It states: “We feel that older pensioners who in the past have paid into SERPS or the second state pension will be discriminated against by the Chancellor’s proposals.”
If the petition reaches 10,000 signatures, it would be entitled to a written response from the UK Government. At 100,000, it would be considered by the Petitions Committee for debate in Parliament.
State Pension Rates for 2026/27
The full New State Pension provides weekly payments of £241.30, four-weekly pay of £965.20, and an annual amount of £12,547. The full Basic State Pension offers weekly payments of £184.90, four-weekly pay of £739.60, and an annual amount of £9,614. Other rates include Category B (lower) Basic State Pension at £110.75 per week, and Category C or D non-contributory at £110.75 per week.
Tax on State Pension
Guidance on GOV.UK states: "You pay tax if your total annual income adds up to more than your Personal Allowance." Total income can include the State Pension (Basic or New), Additional State Pension, private pension, earnings from employment or self-employment, taxable benefits, and other income such as from investments, property, or savings.
Individuals can use an online tool at GOV.UK to check if they need to pay tax on their pension, provided they know their State Pension or private pension income, the amount of other taxable income for the tax year, and do not receive foreign income, Marriage Allowance, or Blind Person’s Allowance.
