A parliamentary petition is advocating for the doubling of the personal allowance for state pensioners. Currently, the personal allowance is £12,570, which is only slightly more than the full new state pension of £11,973 per year. This situation means that many state pensioners, especially those with small private or workplace pensions, are facing an unfair tax burden and could soon be liable for income tax on their state pension.
The proposed change would allow state pensioners to earn up to £25,140 annually without paying tax. This would not affect wealthier pensioners, who would still be taxed on income above this new threshold. The petition aims to rectify what is seen as an unfair system where individuals relying solely or heavily on their state pension are disproportionately taxed.
Previous attempts to address this issue, including a petition to make the state pension tax-exempt, have been met with resistance from the government. In September 2025, the government stated that exempting the state pension from tax would be costly and complicate the tax system, particularly given the current challenging fiscal environment. However, the new petition, which has gained over 1,000 signatur... download the app to read more
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