Story perspectives

Healey Raises £13,036 Pension Tax Allowance for 1 Million

By Drooid · Oct 26, 2026, 11:00 PM UTC · How we work

Summary

Healey Raises Pension Allowance

Chancellor John Healey will raise the tax-free allowance for low-income pensioners to £13,036.
The state pension will rise by £489 to £13,036 per year from April 2027.
The change aims to shield about one million retirees who rely on the state pension from tax.
Steve Webb estimates the allowance will cost £200 million annually by 2030.
Webb warns the gap between pension and tax threshold will create a costly cliff-edge problem.

Summary

Cooper Urges EU Partnership

Treasury insiders say the upcoming Budget will lack large-scale tax and spending announcements.
Liberal Democrat Treasury spokeswoman Daisy Cooper urged a UK-EU growth and defence partnership with single-market membership to ease taxes.
Green Party leader Zack Polanski and Greens asked Chancellor Healey to fund energy-bill relief by ending data-centre tax relief.
Prime Minister Andy Burnham pledged to revise the triple lock, saving £15bn annually by 2040 after a 2030 rollout.

History

Historical Context

In 2010 the UK government introduced the state-pension ‘triple lock’, guaranteeing annual increases of the highest of inflation, earnings growth, or 2.5 %. The policy cost roughly £5 billion each year, a figure cited by Treasury officials such as Steve Webb and highlighted in 2015 fiscal reviews. Chancellor John Healey now proposes raising the tax-free allowance to £13,036, while Liberal Democrat Daisy Cooper and Green leader Zack Polanski demand broader fiscal relief. The parallel underscores that revisiting the triple lock, as Prime Minister Andy Burnham suggests, could curb the £200 million annual cost and reshape pension sustainability.

1 of 3

Healey Raises Pension Allowance

Chancellor John Healey will raise the tax-free allowance for low-income pensioners to £13,036.
The state pension will rise by £489 to £13,036 per year from April 2027.
The change aims to shield about one million retirees who rely on the state pension from tax.
Steve Webb estimates the allowance will cost £200 million annually by 2030.
Webb warns the gap between pension and tax threshold will create a costly cliff-edge problem.

1 / 3