{"id":465897,"date":"2026-03-09T12:30:08","date_gmt":"2026-03-09T12:30:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/465897\/"},"modified":"2026-03-09T12:30:08","modified_gmt":"2026-03-09T12:30:08","slug":"rachel-reeves-to-punish-state-pensioners-with-modest-private-pension-pots","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/465897\/","title":{"rendered":"Rachel Reeves to ‘punish’ state pensioners with modest private pension pots"},"content":{"rendered":"

Warning as more over-65s to be targeted by the taxman due to ‘unfair’ rules\"rachel<\/p>\n

Rachel Reeves has faced criticism over frozen tax bands.(Image: Ian Vogler \/ Daily Mirror)<\/p>\n

More pensioners will find themselves dragged into paying income tax over the next 12 months.<\/p>\n

It’s because of controversial ‘stealth tax’ measures kept in place by Rachel Reeves.<\/p>\n

The Chancellor has come under fire for her decision to keep tax bands frozen, bringing in more taxes from UK households as a result.<\/p>\n

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And it will drag more over-65s over the tax-free personal allowance limit.<\/p>\n

This happens because the pension and other earnings rise every year, while tax bands have been stuck at the same level since 2021.<\/p>\n

The full state pension will climb within a few pounds of the \u00a312,570 personal allowance from April.<\/p>\n

While Ms Reeves has vowed to protect the poorest retirees whose sole income is the state pension from paying any income tax, hundreds of thousands of older people with modest private pensions or other forms of income will face having to pay.<\/p>\n

Targeting pensioners in this way after paying into the system their whole lives is a source of controversy.<\/p>\n

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Office for Budget Responsibility (OBR) forecasts show an extra 600,000 pensioners paying income tax in 2026\/27 and one million by 2030\/31.<\/p>\n

Helen Morgan, the Lib Dem MP for North Shropshire, has criticised the Chancellor’s policy, saying: \u201cBuried in the small print of the Chancellor\u2019s Spring Statement is a shock stealth tax hitting another one million pensioners.<\/p>\n

\u201cFor poorer pensioners, every penny counts and these unfair tax hikes could be the final straw.<\/p>\n

“Rachel Reeves must urgently explain how she will protect older and poorer pensioners from this stealth tax squeeze.\u201d<\/p>\n

Ms Morgan added: \u201cPensioners in North Shropshire have worked hard all their lives, paid into the system and played by the rules.”<\/p>\n","protected":false},"excerpt":{"rendered":"Warning as more over-65s to be targeted by the taxman due to ‘unfair’ rules Rachel Reeves has faced…\n","protected":false},"author":2,"featured_media":465898,"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-465897","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\/465897","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=465897"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/465897\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/465898"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=465897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=465897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=465897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}