Thousands of people have signed a petition to stop the State Pension being taxed.
As it stands, the full State Pension is to increase by £470 a year to £11,973 next month, marginally below the personal allowance of £12,570, the threshold for paying tax on earnings in the UK. A private pension or savings interest on top could then be subject to tax.
The petition, which now has more than 79,000 signatures, was started by Dennis Reed on behalf of Silver Voices, the UK-wide campaign organisation for the over 60s. He says: "Because of the frozen tax personal allowances, the top of the new State Pension may breach the current personal allowance of £12,570 in 2026.
"This would lead to the ludicrous situation of the State Pension safety net, which has already been paid for through National Insurance and tax, being taxed again. Many more pensioners across the country would be plunged into poverty as a result of political choice."
More than 79,000 people have currently signed the petition. You can add your name here.
Once a petition reaches 10,000 signatures, the Government responds, and if 100,000 people sign, a debate in Parliament is considered.
It was inspired by a 75-year-old widow, Colette, who is entitled to a proportion of her late husband’s State Pension as well as her own. This year their combined total took her over the tax threshold by about £1000, which is now being taxed.
Colette’s small NHS pension, of £37 a month, earned as a GP practice nurse, is also being taxed.
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"After Colette lost her Winter Fuel Payment this winter, this is a double whammy on her quality of life in retirement," says Dennis.
"The frozen tax threshold has already led to hundreds of thousands of older people with small private pensions being brought into the tax system for the first time. And for many pensioners like Colette, her State Pension entitlements are already being taxed."
He adds: "If the basic State Pension starts being taxed it undermines the whole principle of a safety net in retirement to ensure that the basic necessities in life can be afforded. And if Triple Lock increases each year are also taxed then that safeguard, to protect against sudden increases in the cost of living, is also undermined."
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