The State Pension is set to rise by £400 a year from April under the triple lock regime
The State Pension is poised for a £400 annual increase from Apri 1, 2025, safeguarded by the "triple lock" policy aimed at preserving the incomes of millions of retired Britons. This update comes amidst Treasury documents released to the BBC, seemingly to mitigate the furore sparked by the scrapping of the Winter Fuel Payment, which could have provided up to £300 to numerous pensioners.
Despite the welcome nature of the additional £400 for pensioners, this increment falls short of the summer forecasts, which anticipated a larger £600 rise based on average wage increases at the time. With the state pension set to rise to £12,000, more elderly individuals may find themselves liable for tax on relatively modest incomes from other sources, such as private pensions. This is due to the tax threshold being frozen at £12,570 until the 2027-28 fiscal year, a policy initiated by the Conservatives and continued by Labour.
Morrissey also pointed out: "There's another looming challenge - frozen tax thresholds mean that the full new state pension is creeping ever closer to tax paying territory and a similar rise next year could see it surpass it."
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