MoneyState pensionGrowing numbers of state pensioners may face HMRC tax bills09:21, 02 Jun 2026A HMRC levy affecting millions of state pensioners has been condemned by a prominent union.Growing numbers of state pensioners may face HMRC tax bills due to fiscal drag, with the triple lock - which guarantees an annual state pension rise - pushing them closer to the tax-free allowance threshold. The personal tax allowance has remained frozen at £12,570 since 2021 - while the state pension continues to increase thanks to the triple lock mechanism. The Civil Service Pensioners' Alliance has warned that in 2021-22, approximately 6.7 million pensioners were paying income tax, reports Birmingham Live.By 2025-26, that figure stands at an unwelcome 8.8 million. Its projections indicate some 9.3 million pensioners could become liable for income tax by 2030. The CSPA said: "Pensioners on modest fixed incomes should not be penalised through frozen tax thresholds while everyday costs continue to rise."Becky O'Connor, the director of Public Affairs at PensionBee, said: "As wage growth pushes more people into higher tax bands, fiscal drag increases the tax burden without any boost to take-home pay, breaching the Government's own promises and leaving families worse off."The retirement specialist added: "When everyday costs rise faster than earnings, pensions are often the first thing to be sacrificed, weakening long-term financial resilience and storing up problems for future retirees." The maximum 'new' State Pension stands at £241.30 per week, although the amount you receive may vary based on your personal circumstances. This falls under the flat-rate 'new' State Pension scheme, which was introduced on 6 April 2016.Under the previous system, the maximum 'basic' State Pension is £184.90 per week, though again, your entitlement may differ depending on individual factors.Article continues belowThe triple lock safeguards the State Pension against losing its purchasing power, guaranteeing an annual increase in line with whichever is highest: average earnings growth, inflation (as measured by the Consumer Prices Index), or 2.5%.Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.State pensionHMRCPensionsTaxPublic services
State pension HMRC alert as millions could end up paying more
Growing numbers of state pensioners may face HMRC tax bills
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