A petition calling on the Labour Party government to introduce a new tax code for state pensioners with double the personal allowance has garnered 120,000 signatures. The proposal would increase the tax-free allowance from the current £12,570 to £25,140 for all Department for Work and Pensions (DWP) state pensioners.
Petition Details
The petition states: "We want the government to introduce a new tax code for state pensioners, set at double the basic threshold. If this was implemented, pensioners would receive a higher tax-exempt limit, but wealthier pensioners would still pay tax. We think that people with small private or workplace pensions are currently being taxed unfairly."
As petitions run for six months, this one has closed but achieved 119,206 signatures, surpassing the 100,000 threshold required for a parliamentary debate. The UK now awaits a debate date, with 86 days remaining on the clock.
Government Response
HM Treasury issued a response on 9 December 2025, stating: "The Personal Allowance is already the highest amongst G7 countries. Doubling this allowance for all pensioners would be costly and untargeted – disproportionately benefitting higher income pensioners."
The government added: "As announced at the Budget, the government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28, if the new or basic State Pension exceeds the Personal Allowance from that point. The government is exploring the best way to achieve this and will set out more detail next year."
Implications
The proposed change would significantly impact pensioners with modest incomes, potentially reducing their tax liability. However, critics argue it would primarily benefit wealthier pensioners and come at a high cost to the Treasury. The debate in Parliament will provide a platform for further discussion on pensioner taxation.
