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UK pension payments rise 4.8% starting April 2026, with tax-free status for low-income retirees from April 2027.
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.
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.
The state pension age will gradually increase from 66 to 67 by April 2028.
New legislation, likely in the Autumn Finance Bill, will implement the tax exemption, with further details pending.
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Los pagos de pensiones en el Reino Unido aumentan un 4,8% a partir de abril de 2026, con un estatus libre de impuestos para los jubilados de bajos ingresos a partir de abril de 2027.