The Department for Work and Pensions (DWP) has confirmed that state pensioners born after 1951 (for men) or 1953 (for women) will receive an additional £2,100. The full new state pension is set to rise for those who qualify, with the qualifying age for men being anyone born between 1951 and 1960, and for women between 1953 and 1960.
Parliamentary Inquiry
This week, Connor Naismith, Labour MP for Crewe and Nantwich, raised a question in the House of Commons, asking the Chancellor of the Exchequer about plans to reduce taxes on pensioners. The response came from Torsten Bell, Labour MP for Swansea West and Parliamentary Secretary at HM Treasury, as well as Parliamentary Under-Secretary at the DWP.
Government Response
Mr Bell stated: "The Government wishes to encourage pension saving to help ensure that people have funds to draw on throughout retirement. That is why, for the majority of savers, pension contributions made from income during working life are tax-free. This makes pensions tax relief one of the most expensive reliefs in the personal tax system, costing £78.2 billion in 2023/24."
He added: "The State Pension is the foundation of the support available to pensioners. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £2,100."
Reassurance for Retirees
Mr Bell further reassured retirees: "This year the headline rate of the new and basic State Pension will remain below the income tax personal allowance. Furthermore, the Chancellor has said that we will ease the administrative burden for pensioners paying small amounts of tax via simple assessment."
He concluded: "More broadly the Government has established a Pensions Commission to consider the long-term future of the pensions system and ensure it remains strong, fair and sustainable for future generations."
