🇬🇧 Andy Burnham
Andy Burnham said to be considering perk for some state pensioners
What happened
Andy Burnham is said to be weighing up a potential increase to the personal income tax allowance, which could rise from £12,570 to £15,570. This move would enable millions of low-income households to earn more before becoming liable for income tax. The change is expected to be announced in the Budget in October.
Why it matters
The potential increase is significant because it would shield more pensioners from being pulled into the tax net and address the prolonged freeze on the personal allowance since 2021. The increasing number of pensioners being drawn into paying tax has been a concern due to the rising state pension under triple lock provisions. This change could affect a growing number of retirees in the coming years.
Key facts
- The personal income tax allowance is currently frozen at £12,570.
- The threshold could rise to £15,570.
- The change is expected to be announced in the Budget in October.
- The state pension is due to increase to approximately £13,000 from next spring.
- The personal allowance has been frozen since 2021.
Official statement
“With the personal allowance frozen at £12,570, each rise in the state pension increases the likelihood that more pensioners will be drawn into paying income tax for the first time.”
🇬🇧 Andy Burnham · Full statement & source
Publisher evidence used
Reporting attributed to nottinghampost.com. WorldLeadersNews links readers to the publisher and does not present a headline-only item as a full article analysis.
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