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State Pensioners: Personal Allowance
15 June 2026
Lead MP
John Lamont
Berwickshire, Roxburgh and Selkirk
Con
Responding Minister
Torsten Bell
Tags
NHSTaxationScotlandForeign AffairsEnergyBenefits & Welfare
Word Count: 7408
Other Contributors: 5
At a Glance
John Lamont raised concerns about state pensioners: personal allowance in Westminster Hall. A government minister responded.
Key Requests to Government:
The MP asks the government to consider a separate personal allowance for pensioners to alleviate tax pressures on smaller pensions, scrap stamp duty land tax and LBTT to help pensioners downsize, and cut renewable energy subsidies and carbon taxes to reduce household energy bills. He also requests that the Minister listens carefully to the concerns raised by Tim Mason and the petition supporters.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The MP is concerned about the growing number of pensioners who are required to pay tax on their state pensions due to rising state pensions and frozen personal tax allowances. He highlights that some pensioners face distressing and worrying situations, such as unexpected tax bills and reduced incomes from previous sources like Royal Mail pensions. The organisation Silver Voices has pointed out that taxing the state pension undermines the retirement safety net designed for basic necessities in retirement. Additionally, he notes challenges such as higher heating and fuel bills, and points to past policy changes by Labour and SNP governments that stripped away winter fuel allowance, causing hardship.
Alison Griffiths
Lab
Bognor Regis and Littlehampton
She thanked the Petitions Committee for scheduling the debate on state pensioners' personal allowance. She highlighted that her constituents in Rustington and East Preston feel frustrated because their state pensions rise while tax thresholds remain frozen, leading to more of their income being taxed by the government each year despite no change in headline rates. Delighted to hear about the increase in pensions, but asked for clarification on how much they were reduced due to taxation following the increases.
I recently met a constituent on the basic state pension who told me that rising living costs were leaving him worse off in real terms. I asked about the consideration given to reviewing pension thresholds, specifically if a phased increase over several years is being explored.
Charlie Maynard
Lib Dem
Witney
The Liberal Democrats are concerned about the impact of freezing income tax thresholds, which has dragged an estimated 600,000 people into paying income tax for the first time this April and another 580,000 into the higher rate. The party advocates raising personal allowances to take low-income earners out of taxation and calls on the Government to publish more information on how they will ensure state pensioners remain exempt from income tax.
John Hayes
Con
South Holland and The Deepings
Mr Hayes expressed concerns about the freezing of thresholds affecting pensioners, noting that it is pushing more people into taxation. He also highlighted the issue faced by WASPI women due to changes in pension provisions and criticised those who do not work while relying on benefits. He cited figures showing 2.2 million pensioners are in relative low income before housing costs and 1.3 million after, urging for a raise in thresholds.
Mark Garnier
Con
Wyre Forest
Thanked Dr Huq for chairing the debate, thanked constituents and colleagues for supporting it. Criticised the Government's tax policies for increasing pensioners' financial burden. Discussed historical context of pension system since 1921, noting that pension income is treated as taxable earnings. Highlighted confusion caused by recent government policies affecting pensions, such as inheritance tax changes and potential tax-free lump sum reductions. Pointed out the freeze on personal allowance thresholds until 2031, which will impact state pensioners who will soon earn above the tax-free threshold. Welcomed the Government's proposal to exempt basic-rate state pensioners from filling in a tax return but called for more clarity. Mentioned HMRC overcharging up to 8.7 million pensioners and requested the Minister to resolve this issue quickly. I questioned whether the Minister supported Chancellor Gordon Brown's policy of raising the state pension by 50p a week during his tenure as Chancellor.
Government Response
Torsten Bell
Government Response
It is a pleasure to speak in the debate with Dr Rupa Huq in the Chair. The Minister thanked John Lamont for opening the debate and highlighted the fall in pensioner poverty while noting it was no grounds for complacency about future years. Over 100,000 people have signed a petition supporting the issue discussed. The Government's priorities are to raise the state pension and rescue the NHS, with the full new state pension projected to rise by £2,100 over this Parliament. The Minister acknowledged the importance of the triple lock but also noted the impact of policies introduced in the 1980s that decoupled pensions from earnings uprating, contributing to increased pensioner poverty. The basic and new state pensions increased by 4.8% in April, boosting incomes by £575 a year for the poorest pensioners. There was also an increase in the pension credit minimum guarantee by 4.8%. One in five people over 75 were on NHS waiting lists, but this number has fallen by over 400,000 since the Government took office. The Minister emphasised that doubling the personal allowance for pensioners would come at a substantial fiscal cost of several billion pounds annually and was inconsistent with their priorities. Over 80% of pensioners were already paying income tax under the previous government. Despite extending the personal allowance freeze, the UK has one of the most generous personal tax allowances in the OECD and G7. The tax system recognises pensioners through measures like no national insurance payments over state pension age and multiple tax allowances. The Minister promised to ease administrative burdens for pensioners so they do not have to pay small amounts of tax via simple assessment from 2027-28.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.