Healey to shield low-income pensioners from income tax in the Budget
Summary
UK Chancellor John Healey plans to introduce a new tax allowance for low-income pensioners in his first Budget on Wednesday. The measure is intended to ensure people whose only income is the state pension do not pay income tax as the full state pension is expected to rise above the personal allowance.Key Facts
- The full, flat-rate state pension is expected to rise by 3.9% to £13,036.40 a year from April.
- The current personal tax allowance is £12,570.
- The government had pledged not to tax people whose only income is the state pension.
- The Treasury has not confirmed how many pensioners the proposed allowance would affect.
- The Budget is due to be printed on Monday evening, and Healey is expected to deliver it on Wednesday lunchtime.
- The Conservatives and Reform UK published alternative Budget proposals that include cuts to welfare spending.
- The Liberal Democrats called for a growth and defence partnership with the EU, while the Green Party proposed ending tax relief for data centres to fund energy bill support.
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