HM Treasury confirms work 'underway' on new income tax rule for state pensioners

NewsCost Of LivingHMRCHannah Martin, pensions expert, has sounded the alarm12:35, 25 Aug 2026HM Treasury confirms work 'underway' on new income tax rule for state pensionersHMRC is yet to shed light on how state pensioners living solely off their Department for Work and Pensions (DWP) will be shielded from tax following Rachel Reeves' promise.‌Ms Reeves, replaced by new Labour Party Prime Minister Andy Burnham with new Chancellor John Healey, vowed before her exit that state pensioners who lived on DWP state pensions alone wouldn't have to pay income tax bills to the tax authority.‌The promise, which is set to be kept by Mr Burnham and Mr Healey, comes amid the prospect of the triple lock dragging the state pension above the £12,570 personal tax-free allowance from the tax authority.‌READ