New State Pension payments set to exceed personal tax allowance if threshold remains frozen at £12,570
A Labour peer has urged the UK Government to review the decision to freeze the personal allowance at £12,570 until 2026 as it could see future New State Pension payments exceed the income threshold resulting in more people paying tax in retirement. Lord Davies of Brixton warned that if no changes are made, the State Pension and personal tax allowance are on course to “collide” by the 2027-28 financial year.