By Christian Abbott
Copyright birminghammail
Martin Lewis has addressed the upcoming 4.7 per cent rise for State Pension next April, warning that next year some pensioners will have to pay tax. The Office for National Statistics (ONS) reported today (16 September) the state pension is on track to rise by 4.7% next April after new labour market figures confirmed average earnings growth. This has called into question the long-term sustainability of the triple-lock guarantee and its clash with frozen tax thresholds. Read more: Households issued £250 council tax warning in 21 local authorities in England On social media, the Money Saving Expert founder warned that, “unless something changes,” anyone “on the full new state pension with no other income will for the first time pay tax on it.” The new state pension will rise to £12,535 a year, only £35 below the frozen personal allowance. Taking to X, Martin wrote: “NEWS. The State Pension is set to rise 4.7% next April. We know this as it is ‘triple locked’, ie rises by the higher of 2.5% or inflation or average earnings rise. “The final figure has just come in, for earnings up to July and it’s the highest of the three, at 4.7%. So based on that the FULL state pension (ie for someone with all the qualifying national insurance years) is set to rise from… “NEW state pension £230.24 to £241.05/wk “OLD state pension (retirees pre Apr 2016) £176.45 to £184.75/wk “This will take someone on the full new state pension to £12,535 a year, only £35 below the frozen personal allowance (amount you can earn tax free each year). “So as state pension income is taxable, that means without any question the following year (unless something changes), those on the full new state pension with no other income will for the first time pay tax on it (as it will rise a minimum 2.5% and personal allowances are frozen).” Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen. You can also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments, banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.
