The HM Treasury has rejected a petition calling for a double personal tax-free allowance for state pensioners. The petition, launched by Timothy Hugh Mason, urges the Government to introduce a new tax code specifically for state pensioners, setting the personal allowance at twice the standard threshold—from £12,750 to £25,140.
The petition garnered over 100,000 signatures, triggering a parliamentary debate. During the debate, Conservative MP Mr Lamont highlighted growing concerns that more pensioners are becoming liable for income tax due to the triple lock increasing the state pension while personal tax allowances remain frozen. He noted that many pensioners with limited incomes and savings face distress from unexpected tax bills.
Conservative MP Mark Garnier criticised the Government for not extending the freeze on tax allowances, stating that the state pension will soon exceed the income tax threshold because of the triple lock. He questioned whether the Minister would raise the tax-free threshold to £25,140 and maintain it at 200% of the working person’s allowance.
Liberal Democrat MP Charlie Maynard advocated for raising tax thresholds to cut taxes fairly, noting that the full new state pension for 2026-27 is £12,547.60 per year, just below the personal allowance of £12,570. He argued that freezing allowances has left pensioners on the brink of taxation.
Pensions Minister Torsten Bell rejected the petition, stating that no political party would deliver a doubling of the personal allowance for pensioners due to the fiscal cost of several billion pounds each year. He confirmed the Government’s commitment to uprating the state pension via the triple lock throughout this Parliament, projecting an increase of about £2,100 over the term.
