The government has formally responded to a growing public campaign urging it to double the Personal Tax Allowance for state pensioners. A petition on the official Parliamentary website, which has garnered more than 30,000 signatures, called for the creation of a new tax code specifically for pensioners.
What the petition demands
The petition argues that individuals with modest private or workplace pensions are being treated unfairly by the current tax system. It proposes a new tax code for those receiving the state pension, which would grant them a tax-exempt limit set at double the standard Personal Allowance. The campaigners stress that this measure would still require wealthier pensioners with higher incomes to pay tax.
Despite the significant public support, the Labour government, through HM Revenue and Customs (HMRC), has issued a detailed rebuttal. The official response was published on 9 December 2025.
The government's stance on pensioner support
In its statement, the government reaffirmed its commitment to the State Pension Triple Lock for the duration of the Parliament, describing it as one of the most generous uprating mechanisms globally. It confirmed that the basic and new State Pension will rise by 4.8% in April, increasing annual incomes for pensioners by up to £575.
Addressing the petition's core demand directly, the response stated: "The Personal Allowance is already the highest amongst G7 countries. Doubling this allowance for all pensioners would be costly and untargeted – disproportionately benefitting higher income pensioners."
Administrative changes on the horizon
While rejecting a blanket doubling of the allowance, the government pointed to a planned administrative change announced in the Budget. From the 2027-28 tax year, pensioners whose only income is the basic or new State Pension will be spared the hassle of paying small amounts of tax via Simple Assessment, provided their pension exceeds the Personal Allowance at that time.
The government confirmed it is exploring the best method to implement this and will provide further details next year. The petition remains open and will be considered for debate in Parliament if it reaches 100,000 signatures.
