Frozen thresholds will see hundreds and thousands of retirees paying tax on their state pensions for the first time next year. The state pension is set to increase by 4.1 per cent for the 2025/26 financial year, pushing more pensioners over the £12,570 personal tax allowance threshold. This rise, based on the triple lock guarantee, will see the full new state Pension climb from £221.20 to £230.30 per week. However, the frozen tax threshold until 2028 is expected to result in nearly 900,000 more people paying tax on their pension income this year alone. Alice Haine, Personal Finance Analyst at …
