More than 11,500 people from across Great Britain have signed an online petition calling on the UK Government to “introduce a Bill to remove income tax on the State Pension”, which means it has now passed the signature threshold and is due an official response.
Basic and New State Pension payments increased in April by 10.1 per cent as part of the annual benefits uprating which means people on the full New State Pension now receive £203.85 each week and those on the full Basic State Pension get £156.20.
However, while the increase will undoubtedly help offset the ongoing cost of living crisis and sticky inflation, it also means more older people may have to pay tax on their income. This is because someone with 35 years’ worth of NI contributions, on the full New State Pension will receive £815.40 every four-week pay period, giving them an annual income of £10,600.20 - which leaves them just £1,969.80 of their annual Personal Allowance of £12,570.
