Pensioners face fresh uncertainty over whether they will be dragged into paying income tax, after Business Secretary Jonathan Reynolds repeatedly declined to guarantee that those relying solely on the state pension would be shielded from tax bills. The concern stems from the state pension being on course to rise 3.9 per cent in April, pushing it above the £12,570 personal tax-free allowance for the first time, despite earlier assurances from Chancellor Rachel Reeves that a fix would prevent pensioners having to file tax returns. Pensions minister Torsten Bell attempted to reassure the public that those "only just" over the threshold would not face the burden of paying small tax sums during this Parliament, but gave no details, saying the Chancellor would set out specifics at the Budget.

The rise is driven by the "triple lock", under which the state pension increases each year by the highest of inflation, wage growth or 2.5 per cent; July's wage growth figure of 3.9 per cent looks set to apply, taking the full new state pension from £241.30 to £250.70 a week. Using HMRC's method of calculating annual pension value, this would put the figure at £13,027, narrowly above the personal allowance, meaning most pensioners relying solely on the state pension would technically owe tax for the first time. Shadow chancellor Andrew Griffith accused the government of preparing to "tax pensioners", while industry figures such as AJ Bell's Rachel Vahey said pensioners could expect roughly £500 extra a year, though final figures depend on September's inflation data.