One million more pensioners to pay income tax in ‘shock stealth grab’

Up to a million more pensioners will be drawn into paying income tax as a direct consequence of frozen tax thresholds, according to new forecasts from the Budget watchdog.

The Office for Budget Responsibility’s (OBR) forecast, published for chancellor Rachel Reeves’s spring statement on Tuesday, indicated that 600,000 more pensioners than previously estimated will face income tax by 2026-27.