UK State Pension Tax: Reeves Pledges No Income Tax for Pension-Only Retirees
UK Chancellor Rachel Reeves has pledged that pensioners whose only income is the state pension will not pay income tax during this parliament, despite the pension rising above the frozen personal allowance. The Treasury confirmed this exemption after concerns that the 2025 Budget would force millions of retirees to pay tax. Critics warn the move could create a two-tier system, favoring those without private savings.