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MILLIONS of Brits who rely solely on the state pension face having to pay income tax within the next two years.
Rises guaranteed under the triple-lock will push many dangerously close to the £12,570 tax threshold.
State pensions rise each year by the rate of either inflation, earnings growth, or 2.5 per cent — whichever is highest.
With wage growth at 4.7 per cent, the full new state pension will rise to £12,535 a year next April.
That is £35 short of the frozen income tax threshold, meaning OAPs in question are certain to be paying up by 2027.
Despite warnings, the Government has made no commitment to raising tax thresholds or making an exemption for Brits who have only the state pension.
A spokesman said: “We are committed to helping pensioners live their lives with dignity and respect, which is why millions will see their pension rise by up to £1,900 this Parliament.”
They also stated that people completely reliant on the state pension would not have to pay any income tax “this year”.
HMRC is expected to deduct tax directly through pension providers — or send pensioners a Simple Assessment tax bill that they have to work out.
Campaigners last night blasted the news, with ex-Pensions Minister Sir Steve Webb calling it a “creeping injustice” due to “drag millions more into the tax net”.
Rachel Vahey, of pensions firm AJ Bell, said it would force many older Brits to fill out their first self-assessment, and warned that present financial woes made reforms on taxes and pensions unlikely.
