The petition received a reply recently – soon after Chancellor Rachel Reeves prolonged the threshold freeze until 2031 – meaning those receiving the full new State Pension will be liable for tax from 2027, assuming the triple lock system, which ensures yearly rises of at least 2.5 per cent, remains in place.

The petition, which can be found here, has collected 44,000 signatures – triggering an official Treasury response. Timothy Hugh Mason, who initiated the campaign, stated: “We want the government to introduce a new tax code for state pensioners, set at double the basic threshold. If this was implemented, pensioners would receive a higher tax-exempt limit, but wealthier pensioners would still pay tax.

“We think that people with small private or workplace pensions are currently being taxed unfairly.”

During her Budget speech in November, Ms Reeves pledged that those only claiming the full new state pension would not be subject to taxation or required to submit tax returns, although she didn’t explain how this would work. The Treasury has now revealed it will develop a plan in 2026.

In its official statement, the Government declared: “As announced at the Budget, the government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28, if the new or basic State Pension exceeds the Personal Allowance from that point. The government is exploring the best way to achieve this and will set out more detail next year.”

Addressing the suggestion to raise the lowest tax threshold for pensioners to £25,140, the Treasury replied: “The State Pension is the foundation of support for pensioners. The Government is committed to a fair tax system but doubling the Personal Allowance for pensioners would be untargeted and costly.”

The department continued: “The State Pension is the foundation of support available to pensioners. The government is committed to the Triple Lock – one of the most generous State Pension uprating mechanisms in the world – for the duration of this Parliament. This will increase the basic and new State Pension by 4.8% next April, boosting pensioner incomes by up to £575 a year and strengthening retirement security.”

Officials added: “The Personal Allowance is already the highest amongst G7 countries. Doubling this allowance for all pensioners would be costly and untargeted – disproportionately benefiting higher-income pensioners.”

The triple lock mechanism is set to increase the full new State Pension from £230.25 to £241.30 weekly (£12,548 annually) next year, placing it just below the threshold.

Personal Finance expert Martin Lewis has pointed out that the total new State Pension stands at £12,558 while the personal allowance remains at £12,570 until 2031 – this represents the amount individuals can earn annually without incurring tax obligations.

Mr Lewis has observed that the new state pension will be £30 below the allowance from April 2026. He explained: “So anyone who’s got any other form of earnings – well, you’re going to go over it if you’ve got the full new state pension, you will have to pay tax.

“But from 2027 because we know the state pension has to rise by a minimum 2.5 per cent because of the triple lock here’s a projection. The minimum it could rise because of the triple lock 2027 it’s going to be about £12,861, £300 more than the tax free allowance as that’s staying stable and it will go more and more and more.”

According to predictions shared on the Martin Lewis Money Show Live, the minimum new state pensions based on the smallest potential increases would amount to £12,861 in 2027, £13,183 in 2028, £13,512 in 2029 and £13,850 in 2030. He said: “So you can see the issue that’s going on. My main concern was the admin. How are we going to have 90-year-olds doing self-assessment forms when they’re only earning £50 over the limit?” Mr Lewis recalled his post-budget discussion with Chancellor Rachel Reeves, during which he asked a question on behalf of a viewer named Rebecca: “Does my 85-year-old father who is living with dementia now have to complete a tax return as his state pension will take him over the personal allowance.”

Ms Reeves responded: “So if you just have a state pension and you don’t have any other pension you don’t have to fill in a tax return. I make that commitment for this Parliament. You’re right 2027 looks like the time it will cross over. We are working on a solution as we speak to ensure we’re not going after tiny amounts of money.”

To view and sign up to the petition click here.