Context
The question arises from concerns about the impact of recent changes in personal allowance thresholds, which affect pensioners receiving full state pensions plus protected payments from older schemes.
Question
What recent assessment has been made of the impact of income tax policies on pensioners? Pensioners in North Shropshire who receive a full state pension plus protected payments have seen their incomes rise above the personal allowance threshold, leading to income tax implications that reduce the real value of their pensions.
Answer from Nigel Huddleston
The Government have nearly doubled the personal allowance since 2010, and in 2024-25 it will be more than 20% higher in real terms. Pensioners whose sole income is the full rate of the new state pension or basic-rate pension do not pay any income tax.
Not addressed: The specific intention behind dragging certain pensioners into paying income tax was not addressed
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