Latest news with #TripleLock
Daily Record
a day ago
- Business
- Daily Record
New call to increase Personal Allowance to £25,000 for all pensioners
The Personal Allowance is set to remain frozen at £12,570 until April 2028. Income tax rises for Scots in April - how the changes affect you A new online petition is calling on the UK Government to increase the personal tax allowance from £12,570 to 'at least £25,000' to help support pensioners in retirement. The Labour Government announced earlier this year that the Personal Allowance will remain frozen at £12,570 until April 2028. Petition creator Rosemary Grey argues that raising the income threshold would 'support our older citizens, many of whom have already contributed by paying tax during their working life'. The e-petition has been posted on the UK Government's Petitions Parliament website. At 10,000 signatures of support it would be entitled to a written response from the UK Government, at 100,000, it would be considered by the Petitions Committee for debate in Parliament. The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across the country. The current official age of retirement is 66 and set to rise to 67 between 2027 and 2028. HM Revenue and Customs (HMRC) data indicates that 8.7m pensioners are projected to pay income tax on their retirement income in 2025/26. It marks an increase of around 420,000 compared to the previous year (2024/25) and a rise of 1.85m from 10 years ago (2015/16). The full annual New State Pension reached £11,973 in 2025/26, tipping hundreds of thousands more pensioners into paying income tax. The UK Government has also confirmed it will honour the Triple Lock policy during this parliamentary term. However, this could see everyone on the full, New State Pension pushed over the tax threshold in just two years' time. David Brooks, head of policy at leading independent consultancy Broadstone, said: 'We would expect a growing number of pensioners to be liable for income tax as the country's demographic changes due to our ageing population. 'Fiscal drag, however, is also bringing hundreds of thousands more pensioners into paying Income Tax bracket every year as the frozen Personal Allowance thresholds combines with the Triple Lock-protected State Pension. 'While perhaps personally frustrating for many pensioners, it reflects the nature of inflation linked occupational pensions and a Triple-locked State Pension that continues to rise.' He added: 'The government will be called on again to protect pensioners from this impact but with seemingly few ways to control the rise in pensioner incomes, taxation is the only tool left. 'We should also expect the income tax from pensioners to rise in coming years as more income will be taken from pensions. Taking pension income is the key way to protect pension benefits from the impact of the Inheritance Tax Rules on unspent pension funds due to come in from April 2027.' Under the Triple Lock policy, the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July, CPI in the year to September, or 2.5 per cent. It is aimed at preventing the value of the State Pensions being whittled away by cost of living pressures. The New and Basic State Pensions increased by 4.1 per cent in April, however, future forecasts from the Labour Government expect it to rise by 2.5 per cent over the next four financial years. Using these calculations, it puts the full New State Pension on track to be worth £12,578.80 in the 2027/28 financial year - £78.80 over the Personal Allowance. While the amount of State Pension to be taxed may seem relatively small - tax is only paid on the amount over the Personal Allowance - older people with other income streams could find themselves having to part with more cash to pay a tax bill - if it's not automatically deducted from private or workplace pensions through PAYE. Online guidance at on who might need to pay tax on their pension also includes a handy tool to calculate how much tax someone might need to pay, and the different ways this can be done. The latest State Pension Triple Lock predictions show the following projected annual increases: 2025/26 - 4.1%, the forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5% State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Future new State Pension forecasts Under a 2.5 per cent increase, the full New State Pension will be worth: 2026/27 - £236 per week, £12,227.30 a year 2027/28 - £241.90 per week, £12,578.80 a year What is taxed Guidance on states: 'You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates. Your total income could include: the State Pension you get - Basic or New State Pension Additional State Pension a private pension (workplace or personal) - you can take some of this tax-free earnings from employment or self-employment any taxable benefits you get any other income, such as money from investments, property or savings Check if you have to pay tax on your pension Before you can check, you will need to know: if you have a State Pension or a private pension how much State Pension and private pension income you will get this tax year (April 6 to April 5) the amount of any other taxable income you'll get this tax year (for example, from employment or state benefits) You cannot use this tool if you get: any foreign income Marriage Allowance Blind Person's Allowance Use this online tool at to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on here.
Daily Record
a day ago
- Business
- Daily Record
New State Pension age review could see people working longer before retirement
The UK Government has launched the State Pension Age Review, commissioning two independent reports due to be completed by 2027. Pension Credit – Could you or someone you know be eligible? The State Pension age is set to start rising from 66 to 67 next year, with the increase due to be completed for all men and women across the UK by 2028. The planned change to the official age of retirement has been in legislation since 2014 with a further rise from 67 to 68 set to be implemented between 2044 and 2046. The UK Governmen t has announced a new Pension Commission to investigate how to boost pension saving with its findings due to be published in 2027. Areas for consideration will include auto-enrolment saving rates, boosting saving among groups such as the self-employed and a review of the State Pension age. Dr Suzy Morrissey will report on factors the UK Government should consider relating to State Pension age and the Government Actuary's Department will prepare a report on the proportion of adult life in retirement. Commenting on the UK Government's plans to review the State Pension, including the age at which it is received, Social Justice Secretary Shirley-Anne Somerville, said: 'The Scottish Government has consistently warned the UK Government against raising the State Pension age more quickly than is needed. 'So, I welcome the fact the UK Government has committed to gathering more evidence before making any final decisions on a timeline. We look forward to the UK Government sharing their proposals with us and we will respond in due course. 'I am particularly keen to see that the difference in average life expectancies found across regions in the UK is fully considered. Otherwise, generations may be left behind, just as they have been before. 'While State Pension policy is reserved to the UK Government, we are committed to enabling older people to have a dignified retirement. That's why, for example, we are providing a Pension Age Winter Heating Payment to 720,000 more people this year, helping to ease the burden of rising energy costs.' Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: 'The Commission will look at state pension and whether the age at which we receive it should increase. Again, it's not an easy decision - we've seen increases in life expectancy slow down in recent years. There's also the issue of healthy life expectancy to consider. 'This currently hovers in the early 60s, so the reality is that many people cannot keep working into their late 60s. Any decision to increase state pension age further needs to take into account what needs to happen to help people remain in the workforce for longer, so they don't fall down the income gap between leaving work and taking their state pension.' She added: 'It's also an opportunity for the government to assess the long-term position of the Triple Lock. Speculation continues to swirl as to whether the Triple Lock's days are numbered but the cost of maintaining it will need to be balanced against the role it plays in helping workers, particularly those who are lower paid to meet their target retirement income.' State Pension age rise 2026-2028 The State Pension age rise from 66 to 67 will affect those born between April 6, 1960 and March 5, 1961. Anyone born between these dates is being prompted to check their State Pension age on here to find out the earliest point at which they'll be eligible for their State Pension. Check your State Pension age online Your State Pension age is the earliest age you can start receiving your State Pension. It may be different to the age you can get a workplace or personal pension. Anyone of any age can use the online tool at to check their State Pension age, which can be an essential part of planning your retirement. You can use the State Pension age tool to check: When you will reach State Pension age Your Pension Credit qualifying age When you will be eligible for free bus travel - this is at age 60 in Scotland Check your State Pension age online here. How to get full New State Pension Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, said: 'People typically need at least 10 qualifying years of NI (national insurance) contributions to receive any State Pension at all and at least 35 years to receive the full New State Pension - though they don't need to be consecutive years. 'Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations. 'Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April last year - a State Pension forecast tool that has been checked by 3.7m since its launch.' She continued: 'People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the UK Government's digital channels. 'A short survey assesses the person's suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working. 'Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won't get that money back.' Ms Haine added: 'People who might need to top up include those that took a career break as well as low earners or expatriates living and working abroad."
Daily Record
a day ago
- Business
- Daily Record
New DWP update on future plans for State Pension Triple Lock
The Triple Lock policy determines the State Pension uprating from April each year. Under the Triple Lock, the New and Basic State Pensions increase each year in-line with whichever is the highest between average annual earnings growth from May to July, Consumer Price Index (CPI) inflation in the year to September or 2.5 per cent. Over the 2025/26 financial year, the State Pension will cost the UK Government an estimated £145.6 billion. However, Work and Pensions Secretary Liz Kendall announced on Monday that a long-term commitment to theTriple Lock is not in the scope of the resurrected Pensions Commission. The Commission last met in 2006 to tackle the issue of working age adults failing to put enough money into their retiremen t savings. Experts have warned that people looking to retire in 2050 are on course to receive £800 per year less than current State Pensioners. The commission is expected to provide recommendations for how to boost retirement income in 2027. Ms Kendall was asked if she thought it was impossible to maintain the Triple Lock guarantee given its cost and if she could guarantee it would be in Labour's next manifesto. She said: 'The Triple Lock is out of scope of the commission. We've got a very clear commitment to that for the entirety of this Parliament. 'And what we're asking the commission to do is genuinely look medium to longer term, the middle of this century, and how the state pension and second pensions work together.' The Office for Budget Responsibility recently said that the Triple Lock has already cost three times more than initially expected and suggested it was unaffordable in the long term. The Labour Government has previously pledged to honour the Triple Lock for the duration of this Parliament. Ms Kendall also confirmed that the next statutory UK Government review into when and how to raise the State Pension age will start work now. She explained: 'Unless we act, tomorrow's pensioners will be poorer than today's, because people who are saving aren't saving enough for their retirement.' Lowering the age and earnings threshold at which people are brought into auto-enrolment and as well as looking at easy-access 'sidecar' savings accounts will be among the options the commission looks into. The Department for Work and Pensions (DWP) said 45 per cent of working-age adults were putting nothing into their pensions. The previous pensions commission recommended automatically enrolling people in workplace pensions, which has seen the number of eligible employees saving rise from 55 per cent in 2012 to 88 per cent. DWP analysis suggested 15 million people were under-saving for retirement, with the self-employed, low-paid and some ethnic minorities particularly affected. Around three million self-employed people are said to be saving nothing for their retirement, while only a quarter of people on low pay in the private sector and the same proportion from Pakistani or Bangladeshi backgrounds are saving. Women face a significant gender pensions gap, with those approaching retirement in line to receive barely half the income that men can expect.
Irish Independent
2 days ago
- Politics
- Irish Independent
Sinn Féin to fight Government ‘line by line' on reforms to Triple Lock
Today at 11:23 Sinn Féin will fight Government 'line by line' on its so called Triple Lock Bill, TD Donnchadh Ó Laoghaire has said. The General Scheme of the Defence (Amendment) Bill 2025 looks to reform Ireland's Triple Lock, which requires a UN resolution as well as a vote of the Dáil and Government approval to deploy Irish Troops. Register for free to read this story Register and create a profile to get access to our free stories. You'll also unlock more free stories each week. Already registered? Log In
Irish Independent
2 days ago
- Politics
- Irish Independent
Letters: The Triple Lock does not make us more democratic, it actually diminishes us
Leaving judgment on the integrity and morality of our aspirant humanitarian operations to the whims of the permanent members of the security council through our Triple Lock policy seriously diminishes our democracy, in my view. When one observes Donald Trump's America and how it is conducting its politics with regard to Gaza and Ukraine, in particular, we must now add the US to China and Russia, in terms of countries that merit no influence whatsoever on our decisions with regard to our military deployments. The reality of Triple Lock in terms of our neutrality and democracy fades into utter insignificance when weighed against our integrity and ability to stand up with compassion for the freedom and sustenance of 'our fellow man'. Michael Gannon, Saint Thomas Square, Kilkenny Well done, Kris Jenner, for your costly looks, let's hope the insides work as well Regarding your article ''I love to see people's reactions when I tell them how old I am,' Kris Jenner's neck lift sparks surge of interest among Irish women' (Sunday Independent, July 20), I think that while it's great to look good, Kris's remarks remind me of an old banger of a car I once had. I got it totally re-sprayed and it looked really good – unfortunately the engine blew out a short time later. The moral of my story is look after your inner health and grow old gracefully. Seamus McLoughlin, Keshcarrigan, Co Leitrim Our children are exposed to the adult world far too early and it damages them Will children and young teens ever be allowed to have a childhood again? CMAT's forthcoming song Euro-Country highlights the stress and anxiety of young people who grew up during the last recession endured. I grew up in the 80s, at a time when money was tight and job losses occurred regularly. Like most children of that era, I received a treat on a Sunday and hand-me-down clothes from cousins. But as I marked off each passing milestone of youth, I did so with little knowledge as to what was going on around me. Because I was immersed in childhood. My generation was sheltered from adult talk, with adults whispering their worries, insistent upon keeping such tales from children's ears. My friends and I didn't have 24/7 access to politics and news and were oblivious to the intricate details of the goings on in the world. We were allowed and encouraged to be children. Today smartphones bring a constant barrage of news to young people's attention, as they attempt to traverse their own world, the real world, an online world and a world far beyond these shores. How and when are they supposed to be children? Marie Hanna Curran, Ballinasloe, Co Galway Tyrone McKenna keeps honourable tradition of fighting Irish alive in Gaza Long has Ireland, the North and Belfast in particular had a rich history of fighting pride. Legends like Rinty Monaghan and Hugh Russell paved the way for world champions like McCullough, Barnett, Frampton and Cacace. Heroes like McCarthy, Eamon and Brian Magee, the Conlans and Paddy Barnes broke the mould. Sean McComb is a world champion robbed of his belt. Volunteering to help children in an active war zone is not a natural reaction, especially when you have two at home. Risking your livelihood and legacy does not come naturally to any sportsperson, let alone someone in the twilight of their career. Tyrone McKenna has honoured the rich tradition of Belfast fighters, entertaining every single time he has graced the squared circle. He has never backed down and has been gracious in victory and defeat. This week he epitomised the spirit of the fighting Irish by flying to the illegally occupied West Bank to volunteer at the Aclai Palestine boxing gym to raise much needed funds. He's doing it because he believes it's right. Eamonn Brady, Lurgan, Co Armagh When this many cannot pay for electricity or heat, the budget needs to step in The cost-of-living crisis was the biggest single issue during the general election campaign. In the Dáil's last day before summer recess, there was palpable disagreement about how best to tackle this same issue. At Leaders' Questions, the Government's decision to rule out another support package in the budget was not for relenting. Since January, an extra 64,000 people couldn't pay their electricity bills. That means for the first time that we have circa 300,000 households that cannot pay for their electricity. We have circa 175,000 that can't pay for heating. I believe that there does need to be a cost of living package in this year's budget. John O'Brien, Clonmel, Co Tipperary What has Israel achieved other than filling the ranks of Islamic armies? The attack on a Catholic church in Gaza shows an Israeli military out of control, not just because of this attack, but because of their overall mission in Gaza that has left tens of thousands of people dead, injured and suffering starvation. Where is the morality in what they are doing and what have they achieved other than creating an apocalyptic landscape and putting hostage lives at risk and starving the population? What they have done is harden the attitudes of the outside world while they fill the ranks of extremist Islamist groups in the region. This insane attack on innocent people, who are caught between Hamas and their fanatical followers, and Netanyahu and his right-wing ideologues, both of whom want to wipe out each other, makes one wonder what have they achieved other than death and misery? What they have achieved, both at home and abroad, is further division between groups of people who at this stage have so much distrust and hatred for each other, that there is very little prospect of bringing peace. What both sides in this bloody carnage have created is a world where close allies are now also divided and mistrust each other and a lasting legacy of mutual hatred.
