The proposal calls for the Government to introduce a special tax allowance for people receiving the HM Revenue and Customs state pension, giving older Britons a much higher tax-free income threshold before they start paying income tax.

Under the plans, pensioners would receive a personal allowance worth double the standard tax-free threshold, potentially saving thousands of pounds a year for pensioners with modest private or workplace pensions.

The petition argues that pensioners with smaller retirement incomes are being “taxed unfairly” under the current system.

This follows news earlier this week that fewer than 1 in 18 pensioners will get a proposed tax break to stop them paying tax on their state pension, and no-one over 75 will be entitled to help.

Parliament to debate pension tax petition next month

The petition officially passed the 100,000-signature threshold needed to trigger parliamentary consideration earlier this year and has now reached more than 119,000 supporters.

MPs are set to debate the issue in UK Parliament on June 15 2026.

The debate will be streamed live on the Parliament YouTube channel.

Campaigners behind the proposal say the current tax system is increasingly penalising pensioners who have saved modestly throughout their working lives.

Many retirees now face income tax bills because:

• The state pension has risen significantly under the triple lock
• The personal allowance remains frozen
• Small workplace pensions push retirees over the threshold

What is the current HMRC personal allowance?

Most people in the UK can currently earn up to £12,570 a year before paying income tax.

But campaigners want state pensioners to receive a much larger allowance specifically for retirement income.

The petition states: “We want the government to introduce a new tax code for state pensioners, set at double the basic threshold.”

Supporters argue this would protect pensioners on relatively modest incomes while ensuring wealthier retirees would still pay tax.

Key dates

• Petition launched: 2025
• Petition closed: 1 April 2026
• Signatures received: 119,206
• Parliament debate: 15 June 2026

Why more pensioners are paying tax

The issue has become increasingly controversial because the full new state pension is rising closer to the frozen personal allowance threshold.

Many pensioners who also receive the following can now easily breach the tax-free limit:

• A workplace pension
• A small private pension
• Savings income

Analysts have repeatedly warned that frozen tax thresholds are pulling more retirees into the tax system each year.

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Could pensioners actually get a higher tax-free allowance?

At this stage, the proposal is only being debated and there is no guarantee the Government will adopt the changes.

However, petitions reaching more than 100,000 signatures must be considered for parliamentary debate.

The issue is likely to attract significant attention given growing anger over pension taxation and the rising cost of living for older households.

If introduced, the change could become one of the biggest tax breaks for pensioners in years.