Healey is expected to shield low-income pensioners from income tax – but how will it work?

The state pension rises each April. There are two different pensions, the basic state pension which is received by older retirees and the new state pension which is received by anyone who has retired since 6 April 2016.

How much the new state pension goes up by is determined by the triple lock, which promises that it will be the highest of inflation, wage growth or 2.5%.

This year, the highest of the three has been wage growth, which for the relevant month was 3.9%. As a result, from April 2027 the full state pension will be worth £13,036 a year. Thanks to a freeze in the personal allowance that applies to everyone, the amount anyone can earn before paying tax has remained at £12,570 since 2021.