Hmrc set to contact eight million state pensioners who are aged over 66

904,000 PEOPLE AT STATE PENSION AGE, WHICH MEANS THOSE BORN BEFORE 1959, CURRENTLY PAY THE 40P RATE, WHILE 124,000 ARE IN THE 45P BAND. 06:23, 22 May 2025 Eight million state pensioners aged

over 66 face a letter from HMRC in a cruel blow. 904,000 people at state pension age, which means those born before 1959, currently pay the 40p rate, while 124,000 are in the 45p band. The

number of pensioners paying the basic rate of income tax is also up, from 6.25 million in 2021-22 to 7.79 million this year. This marks a staggering increase from 455,000 and 39,000

respectively, owing to frozen income tax thresholds and a rise of the Triple Lock, which is the amount state pensioners see their Department for Work and Pensions ( DWP ) pay a year thanks

to the Conservative Party and Liberal Democrats coalition government's pledge back in 2010. READ MORE UK FACES 27C HEATWAVE NEXT WEEK WITH 33 COUNTIES IN ENGLAND SET TO SIZZLE Speaking

to The Times, Sir Steve Webb, a partner at LCP and a former pensions minister, said: “The higher rate threshold has become a real cliff-edge over which growing numbers of pensioners are

falling. Article continues below “There has been a significant increase in the number of pensioners paying income tax at all rates, but the rise has been greatest in the numbers paying

income tax at the higher rates.” A Treasury spokesman said: “We are committed to helping our pensioners live their lives with dignity and respect, which is why we have frozen fuel duty and

increased the state pension. “Our commitment to the triple lock means millions will see their state pension rise by up to £1,900 this parliament.” The Triple Lock has helped propel the state

pension from £8,093.80 a year in 2016 to £11,973 this year. Article continues below The Office for Budget Responsibility has predicted that by April 2027 the full new state pension will be

worth £12,885.50 — £315.50 over the £12,570 personal allowance, which is the amount of tax-free income an individual can earn each year. Pensioners who had paid national insurance

contributions for 35 years to qualify for the full state pension would then have to repay 20 per cent of that £315.50 — losing £63, according to Quilter, the wealth manager. The number of

pensioners paying higher rates of tax is set to increase further as personal allowances and tax thresholds are set to be frozen until the start of the 2028-29 tax year.