The Department for Work and Pensions (DWP) has assured that pensioners relying solely on the flat rate of either the New or Basic State Pension will be “not be required to pay tax next year” should the sum surpass the Personal Allowance threshold of £12,570. This threshold is set to remain unchanged until April 2030.

Pensions Minister Torsten Bell told MPs in Parliament on Monday that arrangements would be put in place to guarantee no pensioner would be obliged to fill out and lodge a Self Assessment tax return with HM Revenue and Customs (HMRC).

According to the Daily Record, his comments came after Conservative MP Dr Luke Evans voiced concerns during DWP questions that the recent Finance Bill vote failed to incorporate any safeguards to stop pensioners being taxed on their State Pension – where it represents their sole income – despite Chancellor Rachel Reeves’ pledge during the Autumn Budget.

Dr Evans stated: “In the Budget, the Chancellor froze thresholds, which brings state pensioners into paying tax. This was raised with the Chancellor, who said that she did not want that to happen and that she would create a workaround.

“However, only two weeks ago we voted on the Finance Bill, which the Labour party pushed through, and as it stands that means that pensioners will pay tax on their state pension. What is the DWP doing to ensure that they will not pay tax on their state pension or have to submit a tax return?”

In reply to the Hinckley and Bosworth MP, Mr Bell explained: “It has been confirmed that those whose income is only the basic level of the Basic State Pension or the New State Pension will not be required to pay tax next year, because the level of Personal Allowance has been set above the level of the new state pension.

“What the Chancellor said at the Budget was that in future years we will make sure that no pensioner will be required to fill in a Self-Assessment form, or indeed a simple Self-Assessment form, for any tax that is due because the new state pension level is above that of the personal allowance.”

Millions of retired people are poised to receive a considerable State Pension boost come April, after Work and Pensions Secretary Pat McFadden recently affirmed the planned rates for the 2026/27 tax year.

The proposed revised payment amounts for State Pensions and associated benefits have now been laid before Parliament and are scheduled to come into force from April 6.

The uplift means individuals claiming the complete New State Pension will receive £241.30 weekly, while those entitled to the maximum Basic State Pension will get £184.90 per week. It’s important to understand that the State Pension sum an individual is entitled to depends upon their National Insurance record.

To receive the complete New State Pension, roughly 35 years of contributions are required, although this can differ if one has been ‘contracted out’.

The full New State Pension is set to increase by around £574 to £12,547 in the upcoming financial year.

New State Pension payment rates 2026/27

Full New State Pension

• 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)

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.