Rachel Reeves, the Chancellor, has made it clear that people who get most of their money from the state pension won't have to pay income tax.The reassurance comes at a time when there are bigger talks about the government's budget, tax thresholds, and income for seniors.
The news is good for millions of retirees who were worried that they might have to pay taxes because their pension payments were going up.
Reeves made it clear that the government is still committed to protecting low-income retirees and making sure that their basic retirement income is not taxed. She said what she did to calm fears that the triple-lock guarantee could mean that households that only get a pension would have to pay more taxes when the state pension goes up.
She said that people who only get the state pension won't have to pay taxes either.
Raising the State Pension: Ask Questions About Tax Thresholds
Because of recent pension increases, some retirees are now closer to the personal allowance limit.There has been a debate about whether the criteria should be changed to keep up with the triple lock.Some people say that if nothing changes, more retirees may have to pay taxes even though they don't have a lot of money.
The chancellor's words show that he or she wants to stop that from happening.
