{"id":156260,"date":"2025-11-27T20:36:09","date_gmt":"2025-11-27T20:36:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/156260\/"},"modified":"2025-11-27T20:36:09","modified_gmt":"2025-11-27T20:36:09","slug":"martin-lewis-shocked-as-rachel-reeves-reveals-new-detail-for-state-pensioners-from-2026-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/156260\/","title":{"rendered":"Martin Lewis shocked as Rachel Reeves reveals new detail for state pensioners from 2026 | Personal Finance | Finance"},"content":{"rendered":"

Martin Lewis was left stunned this evening on his ITV show as Rachel Reeves<\/a> revealed one key detail from her new Budget. The Chancellor confirmed on The Martin Lewis Money Show that people will not have to pay tax on their state pensions if they have no other income at all. While many do not realise that state pension<\/a> payments have always been liable for Income Tax, and this has not changed, those who received a full state pension (either new or basic) have never exceeded the \u00a312,570 Personal Allowance threshold before.<\/p>\n

However, that could be set to change from 2027 following the Autumn Budget announcements on Wednesday. Chancellor Rachel Reeves confirmed the continuation of the Triple Lock<\/a>, and that Income Tax thresholds have been frozen for another three years, until financial year 2030-31. In 2026, the Triple Lock will lift state pension payments to \u00a312,548 per year, just \u00a322 shy of the \u00a312,570 Personal Allowance threshold.<\/p>\n

Then, in 2027, new state pensioners with a full National Insurance record would technically be liable to owe Income Tax on their state pension, as the Triple Lock<\/a> will be at least 2.5% pushing the income beyond the threshold.<\/p>\n

However, the Chancellor clarified to Martin Lewis that those receiving the state pension, with no additional earnings at all, will not have to pay the tax in this Parliament. She said: \u201cIf you are only on the new state pension, we are not going to make you fill in a tax return.\u201d<\/p>\n

Responding in shock, Mr Lewis questioned Ms Reeves to confirm: \u201cWill people not have to pay the tax?<\/p>\n

In response, she said: \u201cIn this parliament they won\u2019t have to pay the tax.\u201d<\/p>\n

However, for pensioners receiving any other earnings, even as little as \u00a350 a month, you will be required to pay the tax.<\/p>\n

\u201cIt almost makes having those other earnings not worth it, but only at a very small level,\u201d Mr Lewis adds.<\/p>\n

In 2027, assuming a minimum 2.5% rise, new state pensioners will get another \u00a3608.58 per year. Added to \u00a312,458 this makes a yearly income of \u00a313,156. Of this, \u00a3586 is above the threshold, so 20% of this would be a \u00a3117.20 tax bill.<\/p>\n

As the thresholds are frozen until 2031, state pensioners will exceed this threshold unless a specific exemption for pensioners is announced before April 2027.<\/p>\n","protected":false},"excerpt":{"rendered":"Martin Lewis was left stunned this evening on his ITV show as Rachel Reeves revealed one key detail…\n","protected":false},"author":2,"featured_media":156261,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[114,268,85,46,24509,266,267,18122,1003,40927,94509],"class_list":{"0":"post-156260","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-il","11":"tag-israel","12":"tag-martin-lewis","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-rachel-reeves","16":"tag-state-pension","17":"tag-state-pensions","18":"tag-tax-exemption"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/156260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=156260"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/156260\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/156261"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=156260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=156260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=156260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}