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To be annoyed pensioners effectively now get a bigger personal allowance

446 replies

FlightBeforeXmas · 26/11/2025 14:07

So because of the fiscal drag from not increasing personal allowances the chancellor has announced basic state pension will not be taxable.
So if you earn this amount you pay tax on it despite having the extra costs of working.
Pensioners are also much more like to own their homes.
How on earth does this make any sense?

OP posts:
crowsfeet57 · 26/11/2025 17:08

FlightBeforeXmas · 26/11/2025 16:35

I haven’t misunderstood or got the thread title wrong. My point is that surely the personal allowance should be the same for pensioners and working people.

It is the same! If your earnings are the same amount as the state pension you don't pay any tax either. The personal allowance applies to all income earned or unearned.

pigmygoatsinjumpers · 26/11/2025 17:08

AutumnLeavesandKnittedJumpers · 26/11/2025 17:04

And a working person’s personal allowance is less than that.

Less than what?

The Personal Allowance is the same - £12,570.

mellongoose · 26/11/2025 17:07

TheRealMagic · 26/11/2025 16:56

I adore my parents. One of the many things that's so great about them is that they're fair-minded and generous and so realise that they were an incredibly lucky generation. It saddens them that their children and, particularly, their grandchildren have such different prospects despite, as you say, really just being younger versions of themselves.

Edited

It’s not helpful to put one group against another.

Im pleased pensioners are being treated with dignity in their old age. It does not need to come at the expense of chances for younger people. It’s not one or the other.

I have people of all ages in my family, from 11 to 92. Everyone understands that work is best and that people deserve to keep more of what they earn. That we look after the most vulnerable through taxes.

The state has ballooned and overall spending needs to come down. If you don’t need to rely on the state you should work.

AutumnLeavesandKnittedJumpers · 26/11/2025 17:06

TheRealMagic · 26/11/2025 17:04

Quite. In today's budget:

Supporting the incomes of over 12 million pensioners through a commitment to the Triple Lock for the duration of this parliament. In April 2026, the State Pension will be uprated by 4.8%, so pensioners will receive up to an additional £575 a year.

A lot of workers would be very, very delighted with a 4.8% increase!

I’m getting a 20p per hour pay ride as a minimum wage nhs worker. According to Mumsnet that’s the worst thing ever!

AutumnLeavesandKnittedJumpers · 26/11/2025 17:05

JudgeJ · 26/11/2025 17:03

But if you have a private pension or other income then it will be clawed back, the limit is £35k with no tiering, under you keep it, over it's taken back.

Good.

working people don’t get any help with their bills. In fact the pensioners of Mumsnet love to disparage young people if they can’t afford anything. I’ve been called a leech and a parasite for still living at home because I can’t afford to get on the housing ladder. Something changes when you hit 66 though apparently. Suddenly you become entitled to all of this extra money.

BIossomtoes · 26/11/2025 17:05

FlightBeforeXmas · 26/11/2025 16:35

I haven’t misunderstood or got the thread title wrong. My point is that surely the personal allowance should be the same for pensioners and working people.

It is.

Megifer · 26/11/2025 17:04

God MN really does detest older people.

Not to worry, they'll probably die soon 👍

123H · 26/11/2025 17:04

FlightBeforeXmas · 26/11/2025 16:35

I haven’t misunderstood or got the thread title wrong. My point is that surely the personal allowance should be the same for pensioners and working people.

The personal allowance IS the same for pensioners and working people!!!

TheRealMagic · 26/11/2025 17:04

TwoTuesday · 26/11/2025 16:27

Yes and a guaranteed inflationary increase each year too, at minimum, which workers (at least those not on the minimum wage) don't get.

Quite. In today's budget:

Supporting the incomes of over 12 million pensioners through a commitment to the Triple Lock for the duration of this parliament. In April 2026, the State Pension will be uprated by 4.8%, so pensioners will receive up to an additional £575 a year.

A lot of workers would be very, very delighted with a 4.8% increase!

AutumnLeavesandKnittedJumpers · 26/11/2025 17:04

pigmygoatsinjumpers · 26/11/2025 17:03

The standard Personal Allowance is £12,570.

BBC:

"The state pension in April will rise by 4.8% in line with average wages, which means:

the new flat-rate state pension - for those who reached state pension age after April 2016 - will increase to £241.30 a week, or £12,547.60 a year, a rise of £574.60

the old basic state pension - for those who reached state pension age before April 2016 - will go up to £184.90 a week, or £9,614.80 a year, a rise of £439.40

In general, you need 35 years of qualifying contributions to get a full state pension."

Edited

And a working person’s personal allowance is less than that.

JudgeJ · 26/11/2025 17:03

RampantIvy · 26/11/2025 15:29

It was reinstated. I have had mine.

But if you have a private pension or other income then it will be clawed back, the limit is £35k with no tiering, under you keep it, over it's taken back.

pigmygoatsinjumpers · 26/11/2025 17:03

The standard Personal Allowance is £12,570.

BBC:

"The state pension in April will rise by 4.8% in line with average wages, which means:

the new flat-rate state pension - for those who reached state pension age after April 2016 - will increase to £241.30 a week, or £12,547.60 a year, a rise of £574.60

the old basic state pension - for those who reached state pension age before April 2016 - will go up to £184.90 a week, or £9,614.80 a year, a rise of £439.40

In general, you need 35 years of qualifying contributions to get a full state pension."

FlightBeforeXmas · 26/11/2025 17:00

It is difficult to link to this being explained as it isn’t the main budget headline but a quick google brings this up.

”But Rachel Reeves said in her Budget statement that pensioners whose sole income was the basic or new state pension would not have to pay small amounts of tax if it exceeded the personal allowance from April 2027. The government is expected to set out more detail about how this will be achieved next year.”

I think it’s a sneaky way to give workers an effective lower personal allowance.

OP posts:
AutumnLeavesandKnittedJumpers · 26/11/2025 17:00

pigmygoatsinjumpers · 26/11/2025 17:00

It is taxed.

Not anymore.

pigmygoatsinjumpers · 26/11/2025 17:00

AutumnLeavesandKnittedJumpers · 26/11/2025 16:59

It should be taxed at the normal rate.

It is taxed.

AutumnLeavesandKnittedJumpers · 26/11/2025 16:59

TheignT · 26/11/2025 16:57

It is unless it is your only income.

It should be taxed at the normal rate.

TheignT · 26/11/2025 16:57

AutumnLeavesandKnittedJumpers · 26/11/2025 16:39

But your state pension is no longer taxable.

It is unless it is your only income.

TheRealMagic · 26/11/2025 16:56

thankgoditssaturday · 26/11/2025 16:48

There must be an awful lot of younger people on Mumsnet that don’t have elderly parents or grandparents. I often think they are talked about like another species. No just older versions of themselves that started working at 16 and have worked continuously for 50 years.

I adore my parents. One of the many things that's so great about them is that they're fair-minded and generous and so realise that they were an incredibly lucky generation. It saddens them that their children and, particularly, their grandchildren have such different prospects despite, as you say, really just being younger versions of themselves.

TheignT · 26/11/2025 16:56

Vaxtable · 26/11/2025 14:32

I must have missed this, surely it would be headlines. Where does she say that the state pension will not be taxed?

It doesn't, it says if they only have the state pension they won't pay tax on it. If you have other income you will pay tax on that plus your state pension. That was how some expert explained it on sky news.

thewintergarden · 26/11/2025 16:53

thankgoditssaturday · 26/11/2025 16:48

There must be an awful lot of younger people on Mumsnet that don’t have elderly parents or grandparents. I often think they are talked about like another species. No just older versions of themselves that started working at 16 and have worked continuously for 50 years.

My parents bought a house for £80k that's now worth a million .
They had free uni education.
They know they are very lucky

AutumnLeavesandKnittedJumpers · 26/11/2025 16:53

pigmygoatsinjumpers · 26/11/2025 16:50

How about telling us what was actually said today that you are basing your opinions on?

Well let’s start with it being raised by another £550 from next April?

“Today I will maintain all income Tax and equivalent National Insurance thresholds at their current level for three further years from 2030, while ensuring that people only in receipt of the basic or new state pension do not have to pay small amounts of tax through Simple Assessment from April 2027.”

Meanwhile, young people who face higher than ever costs of living do not receive any consideration in order to reduce the effects of fiscal drag. The income tax bands have stayed frozen and will remain frozen until 2031. The costs of living at very disproportionately front loaded - buying a house, settling down, etc etc.

By pension age your living costs should be considerably lower. No mortgage, no childcare, less food etc.

Yet I do not get any benefit at all.

123H · 26/11/2025 16:53

itsthetea · 26/11/2025 15:37

Isn’t it that the basic state pension is basically beneath the tax threshold

if you also have a private pension you would start paying tax straight away ?

Ie you don’t get a second tax feee allowance as a pensioner

so you are not being treated u fairly compared to pensioners / those on the state pension only pay no income tax because the level is too low ?

I just can’t find anything stat says what you are saying that pensioners will have a higher tax free allowance than ordinary folk

Exactly!

I am a pensioner. I have a works pension, which I paid into for 30 years. I started receiving my state pension aged 66.

My state pension is below the tax threshold but my total income (state + work pension) puts me above the threshold. Therefore tax is deducted from my work pension.

People who are existing on the state pension only, do not pay tax, as long as the state pension remains below the tax threshold. If, over the coming years, increases in the state pension put it above the tax threshold, then those people will pay tax on their state pension.

There’s no ‘two tier’ system of tax threshold for pensioners. We all have the same tax threshold - if your total income puts you above it … you pay tax.

I don’t mind paying tax. Please remember that most pensioners have worked, and contributed, for 40+ years before they receive their state pension!

thewintergarden · 26/11/2025 16:51

Yanbu
As someone who is disabled, but not disabled enough for benefits, so works full time despite being to ill to live a good life I am just bone tired of being squeezed from every angle. Year after year of below inflation pay rises in the public sector , plus year after year of being asked to do more with less. Crap public services meaning I pay for tutors and dental care and hospital tests. Tax squeezes.

Its like being kicked about repeatedly while pensioners and those on benefits get more and more money

pigmygoatsinjumpers · 26/11/2025 16:50

AutumnLeavesandKnittedJumpers · 26/11/2025 16:48

I am allowed my own opinions, regardless of my education history.

I am sick to death of being shafted in order to pay state pensions. When I am at pension age it won’t exist!

How about telling us what was actually said today that you are basing your opinions on?

Changename12 · 26/11/2025 16:49

AutumnLeavesandKnittedJumpers · 26/11/2025 16:39

But your state pension is no longer taxable.

Only if that is your only source of income.