- Andy Burnham's government is preparing to present its first Budget on Wednesday afternoon, with Chancellor John Healey expected to outline the proposals at about 12.30pm.
- The state pension is set to rise 3.9 per cent from April, bringing the yearly total to £13,036, which is above the income tax personal allowance threshold of £12,570.
- Rachel Reeves, the former chancellor, previously committed to ensuring no pensioner with the state pension as their sole income would pay income tax on the payment.
- It is now understood that Mr Healey will raise the tax-free income allowance to £13,036 for low-income pensioners only.
- Meanwhile, other rumoured plans have included reducing private pension tax relief to a flat 20 per cent rate for all earners, potentially saving around £15bn annually.
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