Chancellor Rachel Reeves
Rachel Reeves is facing increasing pressure to protect pensioners from being taxed on their state pensions.
Over 20,000 people have signed a petition by Silver Voices, a campaign group for older people. They want the government to make sure state pensions aren’t taxed. The group warns that pensioners who rely only on their state pension could end up paying income tax because of rising pension amounts (due to the “triple lock” system) and frozen tax thresholds.
Silver Voices is asking for the tax-free allowance for pensioners to be increased by £1,000 next month and then adjusted annually based on the triple lock. Dennis Reed, the group’s director, said: “The government tried to scrap the triple lock before, but now they’re quietly weakening it. If tax thresholds stay frozen, most pensioners will lose 20% of their pension increases to taxes.”
Labour had promised to keep the triple lock, which ensures pensions rise each year by the highest of 2.5%, inflation, or average earnings growth. However, the tax-free personal allowance has been frozen at £12,570 until 2028, while the state pension is set to increase to £11,973 next month. This means pensioners could soon be taxed on their pensions.
The petition comes before the Chancellor’s spring statement on March 26. If the triple lock increases pensions by 5% or more in 2026, many pensioners will start paying taxes on their pensions.
Colette Rogers, a 75-year-old retired nurse from Dorset, is one of many pensioners already paying income tax. She receives part of her late husband’s pension and a small NHS pension of about £37 a month. She said: “It’s unfair that pensioners with modest incomes are being taxed on money they’ve already paid taxes on.” She also lost her winter fuel payment, leaving her struggling to heat her home. She urged the government to stop targeting pensioners, saying it feels like they’re trying to push older people into poverty.
Charities like Independent Age and Age UK are also calling for action. They say many pensioners are already cutting back on essentials like food and heating. Morgan Vine from Independent Age said: “Pensioners on low incomes are at breaking point. Taxing their state pensions will make things even harder.” Caroline Abrahams from Age UK added: “Freezing tax thresholds is just another way of raising taxes. Pensioners can’t afford to lose more of their income.”
The Chancellor faced criticism last October for cutting winter fuel payments for around 10 million pensioners. The government blamed a £22 billion budget shortfall left by the previous Conservative government, which they denied. Shadow Chancellor Mel Stride accused Labour of neglecting pensioners, saying: “Labour can’t be trusted to protect pensioners’ futures.”
Last year, 660,000 more pensioners started paying income tax due to frozen tax thresholds. A Treasury spokesperson said the government is committed to the triple lock, which will increase pensions by 4.1% this year. However, if tax thresholds remain frozen, most pensioners will soon be taxed on their pensions, undermining the triple lock’s purpose of protecting retirees from economic changes.
The Silver Voices petition has gained over 20,000 signatures in less than a week, showing how angry pensioners are about this issue. If the government doesn’t act, it could face a backlash from older voters. Dennis Reed urged the Chancellor to stop taxing pensions and keep Labour’s promise to protect the triple lock.
