Monday 26th January 2026

(1 day, 8 hours ago)

Commons Chamber
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Luke Evans Portrait Dr Luke Evans (Hinckley and Bosworth) (Con)
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T7. In the Budget, the Chancellor froze thresholds, which brings state pensioners into paying tax. This was raised with the Chancellor, who said that she did not want that to happen and that she would create a workaround. However, only two weeks ago we voted on the Finance Bill, which the Labour party pushed through, and as it stands that means that pensioners will pay tax on their state pension. What is the DWP doing to ensure that they will not pay tax on their state pension or have to submit a tax return?

Torsten Bell Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)
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It has been confirmed that those whose income is only the basic level of the basic state pension or the new state pension will not be required to pay tax next year, because the level of personal allowance has been set above the level of the new state pension. What the Chancellor said at the Budget was that in future years we will make sure that no pensioner will be required to fill in a self-assessment form, or indeed a simple self-assessment form, for any tax that is due because the new state pension level is above that of the personal allowance.