Update on state pension tax change as Andy Burnham could 'review commitments'

NewsCost Of LivingState pensionThe change could affect how much tax pensioners payNicholas Dawson12:34, 05 Aug 2026Andy Burnham could take a fresh look at tax allowances as a key change to the state pension comes in soon. A financial expert warns there is a "real issue" facing millions of pensioners and the amount of tax they pay.‌The Government previously said it would bring in a tax change so that those whose only income is the state pension without increments will not have to pay income tax. This new policy was needed as under the current rules, those on the full new state pension will have to pay tax on their payments from April 2027.‌The full new state pension currently pays £241.30 a week, or just under £12,550 a year. But this is very close to using up the personal allowance of £12,