An online petition is urging the UK Government to increase the Personal Allowance to cover the annual amount of the New State Pension. The UK Government recently confirmed the Personal Allowance will remain frozen at £12,570 until April 2031. However, a new online petition is calling for the income tax threshold to be increased to £14,000 for everyone over State Pension age.
Petition Details
Petition creator Geoffrey Philip Lawson argues increasing the tax limit to £14,000 would put pensioners on an "equal footing until the end of this Parliament." The campaigner also said Chancellor Rachel Reeves’ proposals for those whose sole income is the New State Pension not to pay tax in retirement are "flawed."
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 has increased to £12,547 a year following a 4.8 per cent rise under the Triple Lock, which guarantees annual increases in line with earnings growth, Consumer Price Index (CPI) inflation rate or 2.5 per cent - whichever is highest.
The ‘Increase Personal Income Tax allowance to £14,000 to cover the State Pension’ petition has been posted on the Petitions Parliament website.
Petition Statement
The petition 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 (State Earnings-Related Pension Scheme) or the State second pension, on an equal footing until the end of this Parliament.
“We believe the Chancellor’s proposals that only those receiving the new State Pension will not face additional tax demands because of the Triple Lock are flawed in that they favour pensioners retiring since 2016 with the benefit of the New state pension and thus create an unfair system.
“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.”
At 10,000 signatures of support the petition 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
- Full New State Pension: Weekly: £241.30, Four-weekly pay period: £965.20, Annual amount: £12,547
- Full Basic State Pension: Weekly: £184.90, Four-weekly pay period: £739.60, Annual amount: £9,614
- Category B (lower) Basic State Pension: £110.75
- Category C or D - non-contributory: £110.75
Full details on Additional State Pension, Widows Pension, increments and Invalidity Allowance can be found on GOV.UK.
State Pension and Tax
Guidance on GOV.UK states: "You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates.
Your total income could include: the State Pension you get - Basic or New State Pension, Additional State Pension, a private pension (workplace or personal) - you can take some of this tax-free, earnings from employment or self-employment, any taxable benefits you get, any other income, such as money from investments, property or savings.
Check if You Need to Pay Tax on Your Pension
Before you can check, you will need to know: if you have a State Pension or a private pension, how much State Pension and private pension income you will get this tax year (April 6 to April 5), the amount of any other taxable income you’ll get this tax year (for example, from employment or state benefits).
You cannot use this tool if you get: any foreign income, Marriage Allowance, Blind Person’s Allowance.
Use the online tool at GOV.UK to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on GOV.UK.
