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2026-09-01
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Pensioners paying higher-rate income tax exceeds one million as frozen thresholds take effect

Unbiased summary

A Freedom of Information request by Sir Steve Webb, former pensions minister and partner at LCP, shows that the number of pensioners paying income tax at 40% or 45% has more than doubled since 2021/22, rising from 494,000 to 1.092 million in 2026/27. This is driven by income tax thresholds that have been frozen since 2021, including the personal allowance at £12,570 and the higher-rate threshold at £50,270, while state pension increases under the triple lock have pushed more retirees into higher bands. The government has said that pensioners whose sole income is the state pension will not pay income tax when payments exceed the allowance. Webb warned that pension savers may need larger retirement pots to cover future tax liabilities.

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Coverage by outlet
The Mirror centre-left
Angle The Mirror frames the rise as a warning sign, highlighting the impact of frozen thresholds on pensioners’ tax burdens and emphasizing the role of the previous Conservative government's freeze.
Bias The Mirror emphasises the doubling of higher-rate pensioners and quotes Webb’s warning about future tax bills. It mentions the government's promise that state pension-only retirees won't pay tax, but downplays any mitigating context, instead focusing on the financial pressure on pensioners and the legacy of the Conservative-era freeze.
i Paper centre
Angle The i Paper takes an explanatory, neutral approach, using the data to educate readers about fiscal drag and tax band mechanics without assigning political blame.
Bias The i Paper provides a balanced analysis, explaining why the increase occurred and clarifying misconceptions about higher-rate taxation. It does not highlight political responsibility, instead focusing on the systemic effect of frozen thresholds. It includes all key facts and avoids editorialising.
City AM centre-right
Angle City AM focuses on the policy mechanics and political blame, explicitly attributing the rise to Labour's extension of the threshold freeze and questioning the fairness of the triple lock.
Bias City AM zeroes in on Rachel Reeves’ decision to extend the freeze, calling it a 'stealth tax' and contrasting it with Labour's earlier criticism. It omits the government's promise about state pension-only taxpayers and includes a factual error in basic-rate payer figures (6,250 and 8,480 instead of millions). The tone is critical of Labour's fiscal policy.
Daily Mail right
Angle The Daily Mail does not cover the pensioner tax story but instead pushes a broader narrative critical of Labour's tax agenda, using public opinion and tech company tax data to argue that high earners are already taxed fairly and that Labour's policies are misguided.
Bias The Daily Mail completely omits the FOI data on pensioners, instead publishing two separate articles: one suggesting most Britons think high earners pay enough, and another claiming Apple and Google pay less corporation tax than they extract from app users. These stories serve to blame Labour for overtaxing the wealthy and for being ineffective on corporate taxation. The outlet's deviation is total – it avoids the pensioner story entirely, steering attention to its own tax-related narratives.