Major Update in Campaign to Double State Pensioners' Tax Allowance
Update in Fight to Double Pensioners' Tax Allowance

Significant Development in Push to Double Tax Allowance for State Pensioners

A major update has emerged in the ongoing campaign to double the tax allowance for state pensioners from HMRC. A petition hosted on the Labour Party Parliament website is calling on the government to seriously consider increasing the allowance provided to retirees across the United Kingdom.

Petition Gains Momentum Towards Parliamentary Debate

The petition specifically advocates for the introduction of a new tax code for state pensioners that would effectively double the basic personal allowance threshold. This proposal has now garnered substantial public support, with over 77,000 signatures recorded. This places the petition within approximately 25,000 signatures of reaching the 100,000 threshold required for it to be considered for a formal debate in Parliament.

The petition's statement to the Department for Work and Pensions (DWP) argues that the current system is unfair. It states: "We think that people with small private or workplace pensions are currently being taxed unfairly." The proposed change would mean pensioners receive a higher tax-exempt limit, while wealthier pensioners would still be required to pay tax on their income above this new threshold.

Government Response and Official Position

In a previous development, the DWP broke its silence on the matter, issuing an official response on 9 December 2025. The department acknowledged the State Pension as the foundation of support for retirees but expressed reservations about the petition's core demand.

The DWP's response stated: "The Government is committed to a fair tax system but doubling the Personal Allowance for pensioners would be untargeted and costly." This indicates the government's current stance is one of fiscal caution regarding a blanket increase for all pensioners.

Administrative Changes and Future Plans

Alongside its response to the petition, the DWP highlighted administrative changes planned for the near future. It confirmed that, as announced in the Budget, the government intends to ease the administrative burden for certain pensioners from the 2027-28 tax year onwards.

This change will apply to pensioners whose sole income is the basic or new State Pension, provided it does not include any increments. If this pension exceeds the Personal Allowance, they will no longer have to pay small amounts of tax via the Simple Assessment process. The DWP added that the government is "exploring the best way to achieve this and will set out more detail next year."

Petition Details and Timeline

The petition was created by Timothy Hugh Mason and remains open for signatures until its deadline of 1 April 2026. In accordance with the website's standard rules, all petitions run for a duration of six months. The continued growth in signatures demonstrates significant public interest in reforming the tax treatment of state pensioners, setting the stage for potential political discussion as the signature count approaches the critical 100,000 mark.