Changes should be made in the Budget to protect low-income pensioners from paying income tax on the full flat-rate state pension, Healey has said.
The concern centres on the planned increase to the state pension in April. Without changes to the tax arrangements, the rise could mean that the full flat-rate payment becomes liable for income tax.
The proposal is aimed at preventing low-income pensioners from facing a tax charge as a result of the increase. Healey’s position is that the Government should address the issue through measures announced in the Budget.
No further details of the proposed changes, including how they would operate or how many pensioners could be affected, were provided in the supplied material. The issue is expected to depend on the measures set out in the Budget.
