Thousands of state pensioners face bills from hmrc demanding £2,000

THE FULL "NEW" STATE PENSION HAS RISEN TO £11,973, PUSHING AN ESTIMATED 650,000 MORE PENSIONERS ACROSS THE TAX THRESHOLD IN 2025-26. 06:26, 10 Apr 2025 State pensioners have been

warned over £2,000 tax demands from HMRC. The full "new" state pension has risen to £11,973, pushing an estimated 650,000 more pensioners across the tax threshold in 2025-26. This

latest increase has brought the state pension dangerously close to the frozen £12,570 tax-free personal allowance. Data from The Telegraph found that around 249,000 retirees were already

paying at least £1,000 of tax on their state pension income before April 6. Some 10,700 paid over £2,000 in tax. The analysis by Sir Steve Webb, a former Liberal Democrats MP and pensions

minister, now a partner at pension consultants LCP, shows the rising tax burden for pensioners. READ MORE 11 COUNTIES IN ENGLAND SET FOR 'TWO INCHES' OF SNOW AFTER UK 23C

MINI-HEATWAVE Sir Steve said: “The long-term freeze in the tax threshold, combined with some substantial cash increases in the state pension in recent years, has brought millions of

pensioners into the tax net for the first time since they retired. Article continues below “The combined increases in April 2023, 2024 and 2025 amount to a rise of nearly a quarter in the

state pension while the tax threshold has remained frozen. As a result, a large number of pensioners are now income tax payers”. Jon Greer, of wealth management firm Quilter, said: “Millions

of pensioners are now teetering on the edge of a tax cliff as the state pension creeps ever closer to the frozen personal allowance. “With the Office for Budget Responsibility forecasting a

4.6pc triple lock increase in April 2026, the full new state pension would rise to £240.85 a week, just below the personal allowance of £12,570. Article continues below “That would leave

retirees with barely any headroom before becoming liable for income tax, and by the following year, the state pension alone could push them over the threshold. “This will create a strange

scenario where pensioners may soon pay tax simply for receiving the full amount they’ve been promised. If tax thresholds remain frozen and the triple lock continues delivering strong

increases, this is an inevitability.” An HM Treasury spokesman said: “We are committed to help our pensioners live their lives with dignity and respect, which is why we have frozen fuel duty

and increased the state pension to leave pensioner couples up to £88 better off a month. Our commitment to the triple lock means millions will see their pension rise by up to £1,900 this

parliament.”