Millions of pensioners could have income tax automatically deducted from their state pension under plans reportedly being considered by Labour.
The full new state pension is set to rise above the tax-free allowance of £12,570 next year for the first time, meaning those whose sole income comes from the state payment may face a tax bill.
Pensioners with private income already over the £12,570 threshold already pay tax.
Chancellor Rachel Reeves had said earlier this year that those who live only on the state pension would be exempt from paying tax when it goes above the threshold.
In an interview with Martin Lewis, she had said those living solely the state pension would not have to fill in a tax return, then added: “In this Parliament, they won’t have to pay the tax.”
