Martin Lewis says many pensioners born after this year to be hit by tax for the first time

Many pensioners will start paying tax from April 2027 as state pension is set to rise next year, MoneySavingExpert.com founder Martin Lewis has warned. The state pension is set to go up by 4.8% from April 2026 under the triple lock guarantee, with exact amounts depending on which version of the state pension you receive.

On MoneySavingExpert.com, Martin Lewis writes that this will mean an increase for people on the new state pension from £230.25 to £241.30 a week. Those who retired before April 2016 and are on the old state pension, will see an increase from £176.45 to £184.90 a week.

Mr Lewis adds: "This will take someone on the full new state pension to £12,548 a year, only £22 below the frozen personal allowance - the amount you can earn tax-free each year.

"So as state pension income is taxable, that means without any question the following year, unless something changes, those on the full new state pension with no other income will for the first time pay tax on it (as it will rise a minimum 2.5% and personal allowances are frozen)."

One in three (36%) state pensioners get the new state pension. You'll be on it if you reached state pension age after April 2016. You can claim the new state pension if you were born on or after 6 April 1951 for men or 6 April 1953 for women. The new state pension is expected to rise by over £570 a year, the website claims. The figures only apply to those who get the full state pension, which comes from having enough National Insurance years - usually around 35.

Spencer Churchill, Claims Advice spokesperson, said: "The rise brings the state pension close to the frozen personal tax allowance, meaning more retirees could end up paying income tax on their pension alone.

"Pension rises look good on paper, but frozen personal allowances mean retirees don't always feel the full benefit.

"This is called fiscal drag - where an increase in pension income simply pushes people into tax thresholds.

"Many pensioners who only rely on the state pension will soon find themselves paying tax for the first time, while those with workplace or private pensions are already there."

Under the triple lock, the state pension typically goes up each April by the highest of: average wage growth between May and July (including bonuses), September's Consumer Prices Index (CPI) inflation measure, or 2.5%. The figure for average wage growth has now been confirmed as 4.8% by the Office for National Statistics.