{"id":304135,"date":"2025-12-08T00:35:11","date_gmt":"2025-12-08T00:35:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/304135\/"},"modified":"2025-12-08T00:35:11","modified_gmt":"2025-12-08T00:35:11","slug":"rachel-reeves-confirms-new-tax-perk-for-state-pensioners","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/304135\/","title":{"rendered":"Rachel Reeves confirms new tax perk for state pensioners"},"content":{"rendered":"

The Chancellor has set out new tax details affecting older households\"RachelRachel Reeves had come under pressure on the issue.(Image: Getty Images)<\/p>\n

Rachel Reeves has confirmed rules around low-income state pensioners and tax payments.<\/p>\n

Retirees with the pension as their sole incomes were facing the prospect of having to pay income tax from 2027.<\/p>\n

This is because of frozen tax bands.<\/p>\n

READ MORE: Rachel Reeves announces cash ISA ‘bonus’ for state pensioners<\/a><\/p>\n

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The full state pension has been creeping ever closer to the personal allowance limit of \u00a312,570.<\/p>\n

This is the point at which someone starts paying income tax.<\/p>\n

This situation has increased pressure on the Government, particularly after Rachel Reeves announced the extension of frozen bands at the Budget.<\/p>\n

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The Chancellor has now confirmed that people whose sole income is the state pension will not have to pay income tax.<\/p>\n

She will hope this will quieten concerns over poorer pensioners and tax.<\/p>\n

In an interview with the money campaigner Martin Lewis, Ms Reeves confirmed that “in this Parliament, they won’t have to pay the tax”.<\/p>\n

The extension of frozen tax bands means millions more households will have to pay more tax as their earnings increase.<\/p>\n

This is known as fiscal drag, as more people are pulled into higher tax bands.<\/p>\n

Join our Free Money Saving WhatsApp community for the latest updates<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The Chancellor has set out new tax details affecting older householdsRachel Reeves had come under pressure on the…\n","protected":false},"author":2,"featured_media":304136,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,2215,4176,5107,4174,4175,1445,56,54,55,2932],"class_list":{"0":"post-304135","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dwp","10":"tag-finance","11":"tag-pension","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-rachel-reeves","15":"tag-uk","16":"tag-united-kingdom","17":"tag-unitedkingdom","18":"tag-your-money"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/304135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=304135"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/304135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/304136"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=304135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=304135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=304135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}