Chancellor John Healey plans to shield low-income pensioners from income tax in his upcoming Budget. With the state pension set to rise to £13,036.40 in April, this increase would exceed the personal tax allowance of £12,570, making it taxable without intervention. Healey's proposal includes a new tax allowance specifically for low-income pensioners.
Details on the number of pensioners affected are still pending, as the Budget is finalized. The announcement comes amid alternative Budget proposals from the Conservatives and Reform UK, focusing on welfare cuts and energy bill reductions.
As the Budget approaches, keep an eye on how the proposed tax allowance for low-income pensioners will be structured and its potential impact on their financial security. Additionally, monitor responses from opposition parties regarding welfare and energy policies.