More than 100,000 people have signed an online petition proposing the introduction of a new tax code for people over State Pension age.
More than 100,600 people have signed an online petition calling for the introduction of a new tax code specifically for people over State Pension age, despite the UK Government’s rejection of the proposal. Petition creator Timothy Hugh Mason proposes doubling the current Personal Allowance of £12,570 to £25,140 for pensioners only.
However, since the Treasury’s written response in December, tens of thousands of people have now signed the e-petition which argues doubling the Personal Allowance would give pensioners a “higher tax-exempt limit, but wealthier pensioners would still pay tax” adding “we think that people with small private or workplace pensions are currently being taxed unfairly”.
The ‘Introduce new tax code for state pensioners with double the personal allowance’ petition has been posted on the Petitions Parliament website and will now be considered by the Petitions Committee for debate in Parliament.
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The petition proposes doubling the current Personal Allowance of £12,570 to £25,140 for all people over State Pension age.
The latest HM Revenue and Customs (HMRC) data indicates 8.7 million pensioners are projected to pay income tax on their retirement income for 2025/26. It marks an increase of around 420,000 compared to the previous year (2024/25) and a rise of 1.85m from 10 years ago (2015/16).
The data comes following the freezing of the Personal Allowance threshold at £12,570 until April 2030, while the full annual New State Pension is worth £11,973 in 2025/26.
The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across the country.
However, it’s important to be aware anyone whose sole income is the New State Pension will not pay tax on their payments, something the UK Government reiterate in its response to the petition on December 9.
In the written response on the Petitions Parliament website, The Treasury recognised the State Pension is the “foundation of support for pensioners” but added “doubling the Personal Allowance for pensioners would be untargeted and costly”.
It continues: “The government is committed to the Triple Lock – one of the most generous State Pension uprating mechanisms in the world – for the duration of this Parliament. This will increase the basic and new State Pension by 4.8 per cent next April, boosting pensioner incomes by up to £575 a year and strengthening retirement security.
“The Personal Allowance is already the highest amongst G7 countries. Doubling this allowance for all pensioners would be costly and untargeted – disproportionately benefitting higher income pensioners.
“As announced at the Budget, the government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28, if the new or basic State Pension exceeds the Personal Allowance from that point.”
The Uk Government is currently exploring the best way to achieve this and will set out more details this year.
Full New State Pension rates 2026/27
- Weekly: £241.30 (from £230.25)
- Four-weekly pay period: £965.20
- Annual amount: £12,547
Full Basic State Pension
- Weekly: £184.90 (from £176.45)
- Four-weekly pay period: £739.60
- Annual amount: £9,614
Other State Pension rates
- Category B (lower) Basic State Pension – spouse or civil Partner’s insurance: £110.75 (from £105.70)
- Category C or D – non-contributory: £110.75 (from £105.70)
New Pension Credit rates
Standard minimum guarantee
- Single: £238.00 (from £227.10)
- Couple: £363.25 (from £346.60)
Additional amount for severe disability
- Single: £86.05 (from £82.90)
- Couple (one qualifies): £86.05 (from £82.90)
- Couple (both qualify): £172.10 (from £165.75)
- Additional amount for carers: £48.15 (from £46.40)
Full details on Additional State Pension, Widows Pension, increments and Invalidity Allowance can be found on GOV.UK.
State Pension and tax
Guidance on GOV.UK states: “You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates.
Your total income could include:
- the State Pension you get – Basic or New State Pension
- Additional State Pension
- a private pension (workplace or personal) – you can take some of this tax-free
- earnings from employment or self-employment
- any taxable benefits you get
- any other income, such as money from investments, property or savings
Check if you have to pay tax on your pension
Before you can check, you will need to know:
- if you have a State Pension or a private pension
- how much State Pension and private pension income you will get this tax year (April 6 to April 5)
- the amount of any other taxable income you’ll get this tax year (for example, from employment or state benefits)
You cannot use this tool if you get:
- any foreign income
- Marriage Allowance
- Blind Person’s Allowance
Use this online tool at GOV.UK to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on GOV.UK here.
