UK pay growth slows to 3.9% before crunch interest rates decision

With the tax-free personal allowance frozen at £12,570, experts had said retirees were in line for paying income tax on the new state pension for the first time. With the tax-free personal allowance frozen at £12,570, experts had said retirees were in line for paying income tax on the new state pension for the first time. Economics UK retirees with no other income will not pay tax on new £13,000 state pension, No 10 says Average wages rose by 3.9% in three months to July, signalling pensioners will receive uplift of same percentage in 2027 under triple lock

Prefer the Guardian on Google The government has promised retirees they will be excluded from paying tax on the full new state pension after official figures paved the way for an inflation-beating increase above the tax-free personal allowance.