MPs Asked To Consider Double HMRC Personal Allowance For Pensioners

The petition, launched by Timothy Hugh Mason, urges the Government to introduce a new tax code specifically for state pensioners, with a personal allowance set at twice the standard threshold – taking it from £12,750 to £25,140.

It says: “We want the government to introduce a new tax code for state pensioners, set at double the basic threshold. If this was implemented, pensioners would receive a higher tax-exempt limit, but wealthier pensioners would still pay tax.”

In the petition, which can still be signed, supporters argue that a higher tax-free threshold for state pensioners would protect those relying on modest private or workplace pensions from what they describe as unfair taxation.

Campaigners believe the move would create a fairer system for older people facing rising living costs, without removing tax obligations for those with substantial retirement income.

This follows an admission that there may be changes to come to pensioners’ personal allowance, made by Chancellor Rachel Reeves when she announced the state pension increases.

News! From 2027, the full new state pension will be higher than the tax-free allowance, so tax is due. The Chancellor had said people wouldn’t need to do assessments, but on my show tonight, Rachel Reeves said, they won’t pay tax at all this parliament. Watch the full show &… pic.twitter.com/Uo176F0xm1

— Martin Lewis (@MartinSLewis) November 27, 2025

Addressing MPs, Chancellor Rachel Reeves said that pensioners wouldn’t be made to pay small amounts of tax on their state pensions if they exceed the £12,570 limit.

But, it wasn’t clear how that would work. Speaking to Martin Lewis, Ms Reeves clarified, saying: “We are working on a solution as we speak, to ensure that we’re not going after tiny amounts of money.”

Chancellor of the Exchequer Rachel Reeves poses outside 11 Downing Street, London, with her ministerial red box, before delivering her Budget in the House of Commons, which introduced the idea of changing the way pensioners are taxed (Image: James Manning)

But while the solution is found, thousands have been signing petitions calling for it to be a higher personal allowance for all pensioners.

Another, called Stop the State Pension Being taxed now has more than 203,000 signatures. It says: “Widow Colette, aged 75, is entitled to a proportion of her late husband’s state pension as well as her own, and found for the first time this year that the combined total took her over the tax threshold by about £1000, which is now being taxed. Colette’s small NHS pension, of £37 a month, earned as a GP Practice Nurse, is also being taxed.”

Silver Voices, the UK-wide campaign organisation for the over 60s, is campaigning for Colette, and other pensioners in the same position.

It says: “The frozen tax threshold has already led to hundreds of thousands of older people with small private pensions being brought into the tax system for the first time. And for many pensioners like Colette, her state pension entitlements are already being taxed.

“If the basic state pension starts being taxed it undermines the whole principle of a safety net in retirement to ensure that the basic necessities in life can be afforded.”