Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to her oral contribution to the debate on Social Security of 10 September 2024, Official Report, column 735, whether her estimate that pensioners will be £1,700 better off by the end of this Parliament includes tax payable on that income.

Through this Government’s commitment to the Triple Lock, the full yearly rate of the new State Pension is forecast to increase by around £1,700 by the end of this Parliament. This estimate accounts for potential income tax payable on the full new State Pension income alone, based on current legislation. Where people have other income, income tax may be payable, as has always been the case.

The Personal Allowance threshold is £12,570 per annum and frozen until 2027/28 then assumed to be uprated by CPI till the end of parliament (29/30). The new State Pension is £11,542 per annum and assumed to be uprated by Triple lock till the end of parliament. Economic assumptions for CPI and Triple Lock are consistent with OBR’s Spring Budget 2024 forecasts. OBR’s Spring Budget 2024 economic assumption forecasts are found here: Detailed_forecast_tables_Economy_March_2024.xlsx (live.com)