State Retirement Pensions: Tax Thresholds

(asked on 21st July 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of not increasing the tax threshold to accommodate future increases in state pension on levels of pensioner poverty.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (HM Treasury)
This question was answered on 4th September 2025

The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast.

The Government is also committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility, and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.

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