The Department for Work and Pensions (DWP) has provided important reassurance for those receiving the New or Basic State Pension. Despite concerns over tax thresholds, pensioners whose income comes solely from these pensions will not have to pay tax next year, even if their income exceeds the Personal Allowance threshold of £12,570.
Pensions Minister Torsten Bell addressed MPs in Parliament, confirming that the Personal Allowance is frozen until April 2030, and that pensioners will not be required to submit Self-Assessment tax returns related to their state pension income.
This update follows concerns raised by Conservative MP Dr Luke Evans during a recent parliamentary session. Dr Evans highlighted that while the Chancellor froze tax thresholds in the recent Budget—potentially causing pensioners to become liable for tax—promises were made to prevent such an outcome. Dr Evans stressed, “What is the DWP doing to ensure that they will not pay tax on their state pension or have to submit a tax return?”
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In response, Mr Bell reassured Parliament: “Those receiving only the Basic State Pension or New State Pension will not have to pay tax next year as their income is below the Personal Allowance. The Chancellor has committed to making sure no pensioner will have to fill in Self-Assessment forms for the tax due on their state pension.”
Starting April 6, the full New State Pension will be £241.30 per week, while the maximum Basic State Pension will be £184.90 per week. The full New State Pension is expected to increase by approximately £574 to £12,547 in the next financial year.
This confirmation offers peace of mind to many pensioners amid concerns about tax and paperwork arising from frozen tax thresholds.