State pension tax: Experts warn John Healey's plan creates unfair two-tier pension system

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Labour's commitment to protect pensioners who rely entirely on the state pension from paying income tax has been criticised by pensions experts.They warn it could create inequities between retirees with similar incomes.Chancellor John Healey reaffirmed the pledge yesterday following concerns that the state pension could rise above the frozen income tax personal allowance from April next year.The Treasury said: "Anyone whose only income is the full new or basic state pension without any increments will not pay income tax and we are committed to that over this parliament." TRENDING Stories Videos Your Say The promise was first made by former chancellor Rachel Reeves and will now be honoured under Andy Burnham's Government.However, experts say the policy could leave pensioners with modest private or workplace pension income paying tax, while those receiving only the state pension would not.The issue has arisen because the state pension continues to rise under the triple lock while the...

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