HMRC confirms state pensions are income, affecting personal allowance, while Martin Lewis highlights a tax allowance for pensioners with income below £12,570.

HMRC clarifies that state pensions are classified as income, contributing towards a person's £12,570 personal allowance. Martin Lewis mentioned a 'little known' tax allowance that allows pensioners with income below £12,570 to take £5,000 of savings interest tax-free. The full new state pension is currently £221.20/week or £11,502.40/year, just over £2,000 away from being subject to income tax.