Important Update on State Pension Following Recent Budget Announcement

November 28, 2025 - 02:09

Martin Lewis has provided a significant update regarding the state pension during his Budget special on Thursday, 27 November. According to the latest information, the state pension is set to increase by 4.8% in April 2026. This adjustment means that the new state pension will amount to £12,547.60 annually, which is just shy of the frozen personal allowance tax threshold of £12,570.

During the program, Lewis engaged with Rachel Reeves and addressed a viewer's concern regarding the implications of the state pension for elderly individuals. The viewer inquired about her 85-year-old father, who is living with dementia, and whether he would need to file a tax return due to his state pension exceeding the personal allowance. This question highlights the complexities surrounding taxation for pensioners, particularly those with additional care needs. As the state pension continues to rise, many will be closely monitoring how these changes affect their financial responsibilities.