UK Government to exempt full state pension from income tax

The Treasury confirmed that anyone whose only income is the full new or basic state pension will not be subject to income tax during this Parliament. The policy, first announced in last year’s Autumn Statement, is aimed at protecting around 12 million pensioners as the pension rises under the triple‑lock mechanism.

From April 2026 the full new state pension will be £241.30 a week (£12,550 a year), a 4.8% increase that would otherwise use up the whole personal allowance of £12,570. The government said legislation will be introduced in the autumn finance bill to cement the tax exemption. The Department for Work and Pensions also reported a 4.8% boost to pension payments, raising the weekly rate for the basic pension to £184.90 and the full rate to £241.30, giving pensioners an average monthly increase of about £36.