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.

From April 2010 rates of many benefits and Tax Credits will change, mostly they will increase by one of three factors: +2.5% Basic State Pension +1.8% Standard minimum guarantee Pension Credit, Income Support, Council Tax Benefit, Housing Benefit +1.5% Attendance Allowance, Carer's Allowance, Child Benefit, Disability Living Allowance, Working & Child Tax Credits The 1.5% increase is being paid by "bringing forward" a proportion of the increase expected in April 2011. Next year, any increase over 1.5% will be paid in the usual way. For some benefits there is to be no increase in April 2010. For example, pensions on top of the basic state pension (additional pension, increments to the pension, Graduated Retirement Benefit) and dependency increases will remain at the same rates. This note sets out the basis for the April 2010 uprating of the main social security benefits. It focuses on the Retirement Pension and Pension Credit but also contains a summary of the main benefit and tax credit rates before and after the uprating.
2010 Benefit Uprating (108 KB , PDF)
From April 2010 rates of many benefits and Tax Credits will change, mostly they will increase by one of three factors:
+2.5% Basic State Pension
+1.8% Standard minimum guarantee Pension Credit, Income Support, Council Tax Benefit, Housing Benefit
+1.5% Attendance Allowance, Carer’s Allowance, Child Benefit, Disability Living Allowance, Working & Child Tax Credits
The 1.5% increase is being paid by “bringing forward” a proportion of the increase expected in April 2011. Next year, any increase over 1.5% will be paid in the usual way.
For some benefits there is to be no increase in April 2010. For example, pensions on top of the basic state pension (additional pension, increments to the pension, Graduated Retirement Benefit) and dependency increases will remain at the same rates.
This note sets out the basis for the April 2010 uprating of the main social security benefits. It focuses on the Retirement Pension and Pension Credit but also contains a summary of the main benefit and tax credit rates before and after the uprating.
2010 Benefit Uprating (108 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.
Information on the support available for help with childcare costs in England.
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.