The Chancellor made a statement in a bid to calm fears pensioners would be targeted
Rachel Reeves was forced to issue the clarification.
Tax rules for certain state pensioners have been clarified by the Chancellor.
There were fears that low-income state pensioners would face having to pay income tax due to frozen tax bands.
The full state pension has been creeping ever closer to the personal allowance limit of £12,570 – and is on course to pass it next year.
READ MORE: Rachel Reeves warning to state pensioners with incomes over £35,000
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This is the point when someone starts being taxed on their income.
Rachel Reeves’ controversial decision to keep tax bands frozen at the autumn Budget only increased this prospect.
It would have seen more older people pass the threshold as annual pension rates increased under the triple lock.
The Chancellor has been forced to confirm that people whose sole income is the state pension will not have to pay income tax.
They will effectively be given a pass.
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Pressure would have likely ramped up on the Government over the issue had she not made the clarification.
Ms Reeves stated that “in this Parliament, they won’t have to pay the tax”.
State pension rates will be rising from April under the triple lock.
The new state pension – paid to those who have retired since April 2016 – is rising by £575.
While the basic state pension given to older retirees will rise by £440.
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