{"id":333429,"date":"2025-12-24T15:03:10","date_gmt":"2025-12-24T15:03:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/333429\/"},"modified":"2025-12-24T15:03:10","modified_gmt":"2025-12-24T15:03:10","slug":"rachel-reeves-announces-new-state-pensioner-tax-perk-rules","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/333429\/","title":{"rendered":"Rachel Reeves announces new state pensioner tax perk rules"},"content":{"rendered":"

The Chancellor had been coming under increasing pressure over the issue\"RachelRachel Reeves has confirmed tax details.<\/p>\n

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

Retirees whose sole incomes are the pension were set to be taxed from 2027.<\/p>\n

This is because of frozen tax bands, as the rising pension creeps ever closer to the personal allowance, the point at which someone must pay income tax.<\/p>\n

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This possibility was piling added pressure on Chancellor Rachel Reeves, as it would have hit the poorest pensioners.<\/p>\n

But she has now confirmed those who only get the state pension and no other income will not have to pay tax.<\/p>\n

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

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The full state pension, claimed by those who retired after April 2016, is set to pass the personal allowance threshold of \u00a312,570 in 2027.<\/p>\n

That meant the issue was only going to grow louder for the Chancellor without any announcement.<\/p>\n

However, it does mean retirees with only small private pensions will have to pay income tax.<\/p>\n

Extending the freeze on tax bands is known as fiscal drag, as more households are forced into paying higher rates of tax as their incomes rise.<\/p>\n

To get breaking news emailed to you, sign up here<\/a>, it’s free.<\/p>\n","protected":false},"excerpt":{"rendered":"The Chancellor had been coming under increasing pressure over the issueRachel Reeves has confirmed tax details. Rachel Reeves…\n","protected":false},"author":2,"featured_media":333430,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,2215,4176,2053,5107,4174,4175,1445,56,54,55],"class_list":{"0":"post-333429","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-labour-party","12":"tag-pension","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-rachel-reeves","16":"tag-uk","17":"tag-united-kingdom","18":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/333429","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=333429"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/333429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/333430"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=333429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=333429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=333429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}