{"id":123067,"date":"2026-07-17T07:30:00","date_gmt":"2026-07-17T06:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=123067"},"modified":"2026-07-17T01:57:17","modified_gmt":"2026-07-17T00:57:17","slug":"hmrc-pension-figures-reveal-major-tax-shift","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/hmrc-pension-figures-reveal-major-tax-shift\/","title":{"rendered":"HMRC Pension Figures Reveal Major Tax Shift for Millions of Older People"},"content":{"rendered":"\n

The figures show how a growing share of older people is becoming liable for tax without any change to the headline rates. By the end of the tax year, almost one quarter of all income taxpayers <\/strong>are expected to be above State Pension age, reflecting a combination of frozen thresholds, an ageing population and more people remaining in work beyond retirement age.<\/p>\n\n\n\n

Frozen Allowances Bring More Pensioners into the Tax System<\/strong><\/h2>\n\n\n\n

According to HMRC, around 9.57 million people aged 65 and over paid income tax in 2025-26. That total is expected to rise to 10.2 million in 2026-27, an increase of more than three million<\/strong> since the personal allowance was frozen in the 2021-22 tax year.<\/p>\n\n\n\n

The number of taxpayers above State Pension age is also forecast to rise, from 9.08 million in 2025-26 to 9.58 million in 2026-27. The difference between the two measures reflects the fact that the State Pension age is beginning a phased increase from 66 to 67.<\/p>\n\n\n\n

Former pensions minister Sir Steve Webb<\/strong>, now a partner at consultancy LCP, said the rise was continuing at pace. \u201cThe recent extension of the freeze in personal allowances, combined with the continued generous indexation of the State Pension, means that even more people in retirement can expect to become taxpayers for the first time in the coming years<\/em>,\u201d he said.<\/p>\n\n\n\n

The personal allowance<\/a> has remained at \u00a312,570 since 2021-22. At the same time, the State Pension has increased under the triple lock, which raises payments each year by the highest of inflation, average earnings growth or 2.5 per cent.<\/p>\n\n\n\n

According to figures cited by LCP, around 12.2 million people receive a State Pension. With more than 10 million over-65s now expected to pay income tax, more than seven in 10 <\/strong>pensioners are taxpayers.<\/p>\n\n\n\n

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The social contract has become a gigantic piss take. We pay national insurance years in advance to fund the government, yet the government are taking our tax money and extending the age of the state pension to 68.

National insurance and the state pension has become like a Ponzi\u2026 pic.twitter.com\/Km59pbiSg6<\/a><\/p>— James Melville \ud83d\ude9c (@JamesMelville) July 15, 2026<\/a><\/blockquote>