Pensioners on Low Incomes To Be Spared Income Tax on State Pension in Healey's First Budget

Healey’s first Budget is expected to shield full State Pension-only retirees from income tax from April 2027 (Credit: Lauren Hurley / No 10 Downing Street/Wikimedia Commons)

Pensioners whose only income is the full new State Pension are set to be spared paying income tax on it from April 2027, under plans expected to feature in Chancellor John Healey's first Budget on Wednesday.

A projected 3.9% rise would lift the full new State Pension to £250.70 a week, or £13,036.40 over 52 weeks, according to forecasts reported by MoneySavingExpert. That would put it £466.40 above the current £12,570 income tax personal allowance, assuming both figures are unchanged. The government has not announced the final 2027-28 rate.