Healey is expected to shield low-income pensioners from income tax – but how will it work?

A scheme where only those reliant solely on the state pension get an extra allowance could mean that anyone receiving even a tiny income from elsewhere will pay tax on everything over the standard allowance. Photograph: Geoff Smith/Alamy

Retirees in the UK on low incomes are expected to be given a new personal allowance so that they do not have to hand any of their state pension to HMRC.

The full details are due to be revealed by the chancellor, John Healey, in Wednesday’s budget, but here is what we know so far.