Taxation of state pension
The state pension is liable to income tax, though pensioners are unlikely to pay tax in practice if their only income is the state pension.

People in residential care who receive Pension Credit do not qualify for the Winter Fuel Payment. Other care home residents receive half the full rate (£100, or £150 for people aged 80 or over). This note describes the rules as they apply to people in care homes, and explains the rationale behind them.
Winter Fuel Payments: people in residential care (65 KB , PDF)
The Winter Fuel Payment is a tax-free annual payment to help older people with the cost of their winter fuel bills. The “standard” rates are £200 per eligible household where the oldest person is under 80, and £300 for households containing a person aged 80 or over.
People in residential care do not however qualify for the full rate of Winter Fuel Payment. Those receiving income-based Jobseeker’s Allowance, income-related Employment and Support Allowance or Pension Credit receive no payment. Other residents receive half the full rate (£100, or £150 for people aged 80 or over).
This note describes the rules as they apply to people in care homes, and explains the rationale behind them.
Winter Fuel Payments: people in residential care (65 KB , PDF)
The state pension is liable to income tax, though pensioners are unlikely to pay tax in practice if their only income is the state pension.
A Westminster Hall debate on Personal Independence Payment and disabled people is scheduled for Wednesday 7 May 2025 at 2:30pm. The debate will be led by Diane Abbott MP.
Explore constituency-level data on people claiming Universal Credit in Great Britain using our interactive dashboard.