Image source, Getty Images- Published33 minutes ago
Pensioners on low incomes will be shielded from income tax by Chancellor John Healey in his first Budget on Wednesday.
The full, flat-rate state pension is expected to increase by 3.9% to £13,036.40 a year from April. This would take the payment above the £12,570 personal tax allowance and therefore be liable for income tax if no changes are made.
The government had already committed to not taxing people who only get an income from the state pension. Healey will explain this pledge will be met by plans for a new tax allowance for low-income pensioners.
