State pensioners warned 900,000 face 'lower payments' despite Triple Lock hike

The new Labour Party government and Department for Work and Pensions ( DWP ) look set to increase State Pension payments by £475 in April.

A state pension warning has been issued with 900,000 in a "worrying" situation that will leave them with lower payments despite the Triple Lock hike. The new Labour Party government and Department for Work and Pensions ( DWP ) look set to increase State Pension payments by £475 in April.

But the frozen tax threshold until 2028 is expected to result in nearly 900,000 more people paying tax on their pension income this year alone. Alice Haine, Personal Finance Analyst at Bestinvest, said that pensioners are "edging closer to the point at which their state pension income becomes liable for tax".

Nearly 900,000 more people will exceed the Personal Allowance threshold of £12,570 over the current financial year, according to retirement experts at Spencer Churchill. Next year's full new state pension will rise to £11,975.60 annually.

READ MORE I was Liam Payne's close friend and he was so ill in ways he couldn't beat

It leaves just £595 before the tax threshold is reached. This equates to only £50 per month in additional income before pensioners may face tax liability. Adam Pope, retirement expert at Spencer Churchill Claims Advice, said: "Freezing income tax thresholds for pensioners is worrying and could really affect their financial situation. Almost two million pensioners are expected to be hit by this in the next four years, meaning many of them will have to pay more tax."

"This is especially tough for those mainly living off the state pension. With no change in the tax thresholds, they could find themselves owing more tax than they expected, making things hard if they don't have much to begin with."

And Ms Haine added that retirees already receiving a higher state pension may already be paying tax on the benefit, while those with private pension income will see more of that income taxed. The Triple Lock will likely be confirmed in the Autumn Budget, which Chancellor Rachel Reeves is set to deliver on October 30.