The pensions minister, Torsten Bell, pledged in September that the government would set out new tax rules for pensioners at the Budget, Britbrief reports.
According to Britbrief, Bell said the details would be outlined in the Budget. The Chancellor, John Healey, delivers it to the Commons on Wednesday 28 October.
The pledge concerns the gap between the state pension and the income tax threshold. Britbrief says the full new State Pension is set to rise to around £13,036 next year. That is above the personal allowance of £12,570, which has been frozen since 2021.
Grant Thornton says income tax thresholds are frozen until April 2031. On those figures, someone receiving the full new State Pension would have income above the tax-free allowance.
Bell's remarks have not been independently checked.