Responding to the Prime Minister’s commitment to exempt state pensioners with no additional income from income tax, Morgan Vine, Director of Policy and Influencing at Independent Age said: “Recommitting to exempting the State Pension from income tax is a welcome signal that the new Prime Minister is listening to the concerns of older people on low incomes.
“However, questions remain about how the policy will be implemented across a complex pensions system where one solution does not fit all.
“Different versions of the State Pension mean some older people receiving a lower State Pension and a small private pension would be dragged into the tax system, while others receiving only the State Pension will be exempt, despite the amount they receive being largely the same.
“Clearly, this is a situation that needs to be addressed so no older person on a low income loses out.
“Every day we hear from older people with chronic money worries who are making difficult decisions to make ends meet, from rationing their energy and water use to skipping meals.
“We look forward to receiving clarity from the UK Government on how the State Pension tax exemption will work to protect all pensioners on low incomes.”