![\"Chancellor](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/12\/0_Budget-2025.jpg\")
Chancellor Rachel Reeves.(Image: PA)<\/p>\nThe Chancellor has been under pressure over the issueChancellor Rachel Reeves.(Image: PA)<\/p>\n
Rachel Reeves has made a tax promise to millions of state pensioners.<\/p>\n
Frozen tax bands meant more pensioners faced the prospect of paying income tax over the next couple of years.<\/p>\n
The state pension rate is due to pass the personal allowance – the point at which someone starts paying tax – in 2027.<\/p>\n
READ MORE: December bonus payments for everyone claiming PIP, DLA and Attendance Allowance<\/a><\/p>\n Get our best money saving tips and hacks by signing up to our newsletter<\/a><\/p>\n Chancellor Rachel Reeves has now announced people whose sole income is the state pension will not have to pay tax.<\/p>\n However, those with only small private pensions will be taxed.<\/p>\n Working people who earn the same amount as these pensioners will also have to pay income tax, which could spark accusations of favourable treatment for older Brits.<\/p>\n Pressure has been building over the state pension income tax issue over recent months.<\/p>\n Tax bands have stayed frozen since 2021 and the freeze was extended by Ms Reeves at the Budget last week.<\/p>\n Breaking news straight to your WhatsApp<\/p>\n BirminghamLive readers get the very latest breaking news through our WhatsApp community<\/a>.<\/p>\n All you have to do is click this link<\/a> and select ‘Join Chat’ and you are in.<\/p>\n We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don\u2019t like our community, you can check out any time you like by selecting ‘exit group’.<\/p>\n