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Older OAPs set to pay more tax under Reeves

Daily Express

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January 07, 2026

Rachel Reeves is about to reopen one of the most bitter fault lines in retirement, and older state pensioners will feel the greatest pain.

- Edited by HARVEY JONES

Older OAPs set to pay more tax under Reeves

Many older pensioners already receive a far lower pension than newer retirees. Now Reeves is lining them up to pay more tax. It's the direct result of a frozen tax threshold and a clumsy political workaround that creates a two-tier system among pensioners.At the heart of the mess is the frozen personal allowance. The income tax threshold has been stuck at £12,570 since 2021. Thanks to Reeves, it will now remain frozen until at least 2030/31. The freeze was originally introduced by the Conservatives and hit tens of millions of workers, pushing many into higher tax brackets. Many of these will be pensioners, some of whom never expected to pay income tax at all in retirement.

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