The UK's full new State Pension is on track to surpass £13,000 annually from next April, according to the latest earnings data. However, the government's response, as reported by MoneySavingExpert, falls short of a blanket tax exemption, offering only a limited reprieve for those just over the personal allowance.
Chancellor Rachel Reeves is expected to confirm the exact mechanism in the upcoming Budget, but the pledge only covers pensioners whose total taxable income barely exceeds the £12,570 personal allowance. This means those with additional income from private pensions or employment may still face tax bills.
Triple Lock Drives Increase
The rise is driven by the triple lock guarantee, which increases the State Pension by the highest of wage growth, inflation, or 2.5%. Data released Tuesday showed total earnings including bonuses grew 3.9% in the three months to July 2026, the leading indicator for next April's increase. September's CPI inflation figure, due October 21, could still alter the final rate.
If 3.9% is confirmed, the full new State Pension would rise from £241.30 to £250.70 per week, an annual increase of £488.80 to £13,036.40. However, HMRC's calculation method, which uses 51 weeks at the new rate and one week at the old, results in a taxable figure of £13,027, leaving a £457 excess over the personal allowance for those with no other income.
Limited Scope of Pledge
Pensions Minister Torsten Bell stated that pensioners who only just exceed the allowance would not face the administrative burden of paying small tax amounts during this Parliament. But the statement did not specify whether the government would raise the allowance, introduce a deduction, or waive collection below a threshold.
Importantly, the protection does not extend to all pensioners. HMRC aggregates all taxable income before applying allowances, so someone with a modest occupational pension could still be liable. In such cases, tax may be collected through an adjusted tax code on that other income, or via a Simple Assessment after the tax year.
Basic State Pension Recipients
Recipients of the older basic State Pension will see a smaller increase, from £184.90 to £192.10 per week, bringing the annual total to £9,989.20—still below the personal allowance. However, additional income could push them over the threshold.
MoneySavingExpert estimates that 8.4 million pensioners receive the basic pension and 4.7 million the new one, though actual payments vary based on National Insurance records.
Impact on MONY Group Investors
MoneySavingExpert is part of London-listed MONY Group (MONY.L), though its editorial independence is protected. The pension intervention highlights the brand's reach and agenda-setting role but is not a direct earnings event. MONY does not disclose revenue from individual articles, and a spike in readership cannot be directly translated into sales.
In its July interim results, MONY reported first-half revenue of £227.1 million and adjusted EBITDA of £75.5 million. The MSE app has surpassed 3.5 million downloads, and 9 million people subscribe to its weekly newsletter. Shares closed at 195 pence on September 16, up 1.3%.
What to Watch
Two key dates will determine the final outcome: the September CPI release on October 21, which could set a higher triple-lock rate, and the Budget, which must clarify how Bell's promise will work in practice. Until then, £250.70 a week remains a defensible estimate, but any claim that the full State Pension is broadly tax-free would be premature.
