Millions of pensioners could be dragged into paying income tax for the first time next year as the state pension, boosted by the triple lock, is set to rise above the personal tax threshold, despite pledges from Andy Burnham to shield them. Analysis suggests the Government's promised protection would help only around one in 16 pensioners, leaving the vast majority facing a new tax bill, while Chancellor John Healey comes under pressure to find substantial savings ahead of the Budget to reassure financial markets.

Official figures show the state pension will rise by at least 3.9 per cent in April, pushing it to just over £13,000, above the £12,570 income tax threshold. Downing Street has promised that anyone whose only income is the basic state pension will not pay tax during this Parliament, but former pensions minister Sir Steve Webb said this would leave 94 per cent of pensioners still paying, with fixing it properly costing over £1billion. Analysis by Lane Clark & Peacock found fewer than a fifth of the 5.5 million people on the new state pension would be helped, while none of the 7.7 million on the older, lower state pension would benefit, as the freeze on tax thresholds—introduced by the Conservatives and extended by Rachel Reeves until 2031—continues to pull more people into paying tax.