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flag UK pension payments rise 4.8% starting April 2026, with tax-free status for low-income retirees from April 2027.

flag Starting April 2026, UK state pension payments will rise by 4.8% to £241.30 per week, with higher-rate pensioners gaining £44 monthly and lower-rate recipients seeing a £440 annual increase. flag The government will exempt low-income pensioners from income tax on their state pension from April 2027, despite the amount exceeding the tax-free allowance, to prevent small tax bills. flag The state pension age will gradually increase from 66 to 67 by April 2028. flag New legislation, likely in the Autumn Finance Bill, will implement the tax exemption, with further details pending.

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