Latest news with #TripleLock
Daily Record
12 hours ago
- Business
- Daily Record
Millions of people over State Pension age set to pay tax in retirement this year
HMRC estimates 8.7 million pensioners will pay tax for the 2025/26 financial year. Income tax rises for Scots in April - how the changes affect you The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across the country. The current official age of retirement is 66 and set to rise to 67 between 2027 and 2028. HM Revenue and Customs (HMRC) data indicates that 8.7m pensioners are projected to pay income tax on their retirement income in 2025/26. It marks an increase of around 420,000 compared to the previous year (2024/25) and a rise of 1.85m from 10 years ago (2015/16). The data comes following the freezing of the Personal Allowance thresholds at £12,570 until April 2028, whilst the full annual New State Pension reached £11,973 in 2025/26, tipping hundreds of thousands more pensioners into paying income tax. The UK Government has also confirmed it will honour the Triple Lock policy during this parliamentary term. However, this could see everyone on the full, New State Pension pushed over the tax threshold in just two years' time. David Brooks, head of policy at leading independent consultancy Broadstone, said: 'We would expect a growing number of pensioners to be liable for income tax as the country's demographic changes due to our ageing population. 'Fiscal drag, however, is also bringing hundreds of thousands more pensioners into paying Income Tax bracket every year as the frozen Personal Allowance thresholds combines with the Triple Lock-protected State Pension. 'While perhaps personally frustrating for many pensioners, it reflects the nature of inflation linked occupational pensions and a Triple-locked State Pension that continues to rise.' He added: 'The government will be called on again to protect pensioners from this impact but with seemingly few ways to control the rise in pensioner incomes, taxation is the only tool left. 'We should also expect the income tax from pensioners to rise in coming years as more income will be taken from pensions. Taking pension income is the key way to protect pension benefits from the impact of the Inheritance Tax Rules on unspent pension funds due to come in from April 2027.' Under the Triple Lock policy, the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July, CPI in the year to September, or 2.5 per cent. It is aimed at preventing the value of the State Pensions being whittled away by cost of living pressures. The New and Basic State Pensions increased by 4.1 per cent in April, however, future forecasts from the Labour Government expect it to rise by 2.5 per cent over the next four financial years. Using these calculations, it puts the full New State Pension on track to be worth £12,578.80 in the 2027/28 financial year - £78.80 over the Personal Allowance. While the amount of State Pension to be taxed may seem relatively small - tax is only paid on the amount over the Personal Allowance - older people with other income streams could find themselves having to part with more cash to pay a tax bill - if it's not automatically deducted from private or workplace pensions through PAYE. Online guidance at on who might need to pay tax on their pension also includes a handy tool to calculate how much tax someone might need to pay, and the different ways this can be done. The latest State Pension Triple Lock predictions show the following projected annual increases: 2025/26 - 4.1%, the forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5% State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Future new State Pension forecasts Under a 2.5 per cent increase, the full New State Pension will be worth: 2026/27 - £236 per week, £12,227.30 a year 2027/28 - £241.90 per week, £12,578.80 a year What is taxed Guidance on states: 'You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates. Your total income could include: the State Pension you get - Basic or New State Pension Additional State Pension a private pension (workplace or personal) - you can take some of this tax-free earnings from employment or self-employment any taxable benefits you get any other income, such as money from investments, property or savings Check if you have to pay tax on your pension Before you can check, you will need to know: if you have a State Pension or a private pension how much State Pension and private pension income you will get this tax year (April 6 to April 5) the amount of any other taxable income you'll get this tax year (for example, from employment or state benefits) You cannot use this tool if you get: any foreign income Marriage Allowance Blind Person's Allowance Use this online tool at to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on here.
Irish Examiner
a day ago
- Politics
- Irish Examiner
Irish troop missions 'held hostage' by UN veto, says former army colonel
The requirement that any Irish international peacekeeping deployment must have the authorisation of the UN Security Council means Ireland can be 'effectively held hostage' by any of its five members, a senior retired army officer has said. Former Colonel Colm Doyle – who has also served at UN HQ – told the Oireachtas Defence Committee that claims that the removal of the UN authorisation obligation would threaten Ireland's military neutrality were 'greatly misjudged'. The committee is continuing hearings on the Defence Bill 2025 which proposes to scrap the requirement for UN approval to send Defence Forces abroad. The 'Triple Lock' refers to three hurdles – Government, Dáil, and UN – that must be cleared before troops, beyond 12 personnel, can be deployed overseas. The bill authorises Irish troops to take part in an 'International Force' for the purposes of peacekeeping, conflict prevention, and international security 'consistent with the principles of the United Nations Charter'. It also plans to increase the number of personnel that can be sent overseas – from 12 to 50 – without the Government needing Dáil approval. Col Doyle told the committee: 'On the subject of the triple lock and its retention or amendment which has become politically emotive, I find myself very surprised. That this is in some way being described as a threat to our military neutrality is, in my view greatly misjudged and I do not support those opposing the measure. He said the UN veto system reflects the 'realities' of global power dynamics, but said it also leads to 'deadlock' where the permanent five members' interests conflict. 'This illustrates one of the main flaws of the UN Security Council - that Ireland's involvement in international peacekeeping can effectively be held hostage by any one of the permanent five members' use of, or threat of the use of a veto,' he said. "Surely we have the confidence, maturity, and political experience to make our own decisions for Ireland's overseas policy to evolve in response.' Former Army Ranger Cathal Berry said the original purpose of the Triple Lock was 'to give Dublin a veto' over any Security Council order for overseas deployment, not to give "New York a veto over Dublin". He said 'no other country, whether neutral or otherwise' require UN authorisation. But he said many parliaments have regard to it. He suggested the Oireachtas Defence Committee and the Attorney General could have a role in examining any proposed deployment. Major General Kieran Brennan, retired, said the committee members faced a dilemma: 'Do we stand on principle and say no to overseas deployments unless there is an UN Security Resolution because of its supposed impacts on our neutral status or should the saving and enhancements of people's lives trump all else? 'With a dysfunctional UN Security Council are we destined to remain on the sidelines expecting others to intervene on our behalf? Accordingly, I support the proposals.' Read More Government proposal on triple Lock gives an Irish solution to an Irish problem
RTÉ News
2 days ago
- Politics
- RTÉ News
Cttee hears Triple Lock dilutes Ireland's sovereignty
An Oireachtas committee has heard that the Triple Lock dilutes Ireland's sovereignty and undermines the UN Charter. The Joint Committee on Defence and National Security is debating the legislation that would remove the need for UN approval when deploying more than 12 members of the Defence Forces overseas. The Defence (Amendment) Bill 2025 would remove the Triple Lock when they are serving as part of an international force. Former TD Cathal Berry, a former army ranger, said that the Triple Lock "absolutely" dilutes Ireland's sovereignty. He said that, currently, Ireland is giving some of its "democratic power" to "kings and queens and authoritarian rulers and wannabe dictators all over the world". The UN Charter encourages regional oversight of peacekeeping which, he said, the Triple Lock undermines. Major General Maureen O'Brien (Retired) said that when she was selecting from the 119 nations which contribute to UN forces, whether a country was neutral or had a Triple Lock was "never a consideration". It is seen only as a "national issue". Major General O'Brien deployed overseas nine times, eight times with the UN. She led a multinational force of 1,100 that oversaw a ceasefire between Israel and Syria and said that impartiality was essential in dealing with both sides. From UN headquarters she oversaw all peacekeeping deployments. She told the committee that the Triple Lock prevents Ireland from deciding where to deploy its peace troops. "We cannot make our own decisions. We are dependent on five countries telling us whether we can deploy. I think that reduces our sovereignty. And perhaps our neutrality as well," she said. "12 troops isn't enough to do anything," she said. "You need at least 50 people." General Kieran Brennan (Retired) said he supports the proposed changes to the Triple Lock, as countries such as Gaza, Ukraine and Congo are crying out for peacekeepers. "No, I've no reservations," he replied, when asked if he had concerns over there being sufficient safeguards in the legislation. Colonel Colm Doyle (Retired) said that Ireland has the longest unbroken record "of any nation" for sending troops on UN peacekeeping missions, something he described as "noble". He said that claims that changes to the Triple Lock would undermine neutrality were "greatly misjudged". The UNSC is flawed, he said, as Ireland's participation on peacekeeping "can effectively be held hostage" by any permanent member of the security council. Labour TD Duncan Smith cautioned against Ireland turning its back on the UN which is greatly weakened. Major General O'Brien told the committee that when a country provides personnel to the UN, it must sign a Statement of Unit Requirements. This is a contractual agreement covering finances and all conditions of the troops' deployment. For Irish personnel, the statement always includes a provision that military command and control remains with the Irish unit at all times.
Scottish Sun
6 days ago
- Business
- Scottish Sun
Warning for 420,000 people on the state pension being hit with tax bill for the first time – can you avoid it?
We reveal how you make the most of your cash to avoid paying income tax below TAXING TIMES Warning for 420,000 people on the state pension being hit with tax bill for the first time – can you avoid it? Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HUNDREDS of thousands of state pensioners are set to be stung with a tax bill for the first time. Fresh data from HMRC shows 8.7million people of state pension age or older will pay income tax on their retirement income in 2025/26. Sign up for Scottish Sun newsletter Sign up 1 State pensioners are facing paying income tax due to fiscal drag Credit: Getty This is a 420,000 rise compared to the previous financial year and a hike of 1.85million from 10 years ago (2015/16). The blow comes due to a combination of a rising state pension, under the Triple Lock, and frozen income tax thresholds - known as fiscal drag. The full new state pension is currently worth £11,973 a year while the personal allowance is £12,570, with the threshold frozen until 2028. The full new state pension amount on its own is not yet enough to breach the allowance. However, older people receiving income from other avenues like a private pension or job on top of a state pension can end up going over the threshold and having to pay tax. David Brooks, head of policy at leading independent consultancy Broadstone, said: "We would expect a growing number of pensioners to be liable for income tax as the country's demographic changes due to our ageing population. 'Fiscal drag, however, is also bringing hundreds of thousands more pensioners into paying income tax bracket every year as the frozen personal allowance thresholds combines with the Triple Lock-protected state pension. 'While perhaps personally frustrating for many pensioners, it reflects the nature of inflation linked occupational pensions and a Triple-locked state pension that continue to rise." It's not just people receiving income through a state pension and other streams who are set to pay income tax either. As the state pension rises under the Triple Lock, some relying solely on this could end up paying tax. What are the different types of pensions? The Triple Lock ensures the state pension goes up by whatever is highest out of inflation, 2.5% or wages. Previous forecasts by Deutsche Bank predict the Triple Lock will rise by £600 in April 2026 to £12,631. This would see someone on the full new state pension breach the personal allowance for the first time and having to pay tax. In May 2024, then Chancellor Jeremy Hunt said the income tax personal allowance would be frozen at £12,570 until 2028. The freeze was first put in place in 2021. In her first Budget in October that year, Chancellor Rachel Reeves had been widely expected to extend the freeze beyond 2028. The Sun asked the Treasury to comment. How to avoid paying income tax on your state pension There are a few tricks you can use to lessen the chances of being taxed on your income if you're a state pensioner. The first is by withdrawing from a private or workplace pension tactically. It's tempting to take out your whole private or workplace pension when you reach retirement and put it into a savings account. But do this and you'll end up paying income tax on any sitting in taxable accounts. Instead, you can actually take out 25% of the value of the pension tax-free. You can either do this as a lump sum or in smaller gradual amounts to top up your state pension without being taxed on it. A second way is by making the most of your ISAs as withdrawals from these types of accounts aren't subject to income tax. For example, if you withdrew 4% from a £100,000 ISA pot, your take home pay would be £4,000. How does the state pension work? AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046. The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age. But not everyone gets the same amount, and you are awarded depending on your National Insurance record. For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings. The new state pension is based on people's National Insurance records. Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension. You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit. If you have gaps, you can top up your record by paying in voluntary National Insurance contributions. To get the old, full basic state pension, you will need 30 years of contributions or credits. You will need at least 10 years on your NI record to get any state pension. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
RTÉ News
7 days ago
- Politics
- RTÉ News
Annual review needed if Triple Lock removed, committee will hear
Without the Triple Lock mechanism in place, any future Irish peacekeeping missions should be subjected to an annual review to ensure they align with the UN Charter, an Oireachtas committee has been told. Professor Ben Tonra, of the UCD School of Politics and International Relations, said the Government must establish robust mechanisms to guarantee that overseas missions align with the UN Charter and international law. Legislation to reform the Triple Lock is before the Oireachtas Committee on Defence and National Security for pre-legislative scrutiny. The General Scheme of the Defence (Amendment) Bill 2025 would remove the need for UN Security Council and General Assembly approval when deploying more than 12 members of the Defence Forces overseas when they are serving as part of an international force. Professor Tonra will tell the committee that the Government should consider whether democratic oversight of an overseas missions ends with the initial approval. He said an annual review mechanism could empower the Dáil to monitor ongoing missions to ensure they remain within the scope of peacekeeping, conflict prevention and support for international security. The legislation states that a contingent of the Defence Forces can be dispatched outside the State where there is Government approval along with a resolution passed by the Dáil. However, a subsequent Dáil resolution is not required when deploying a replacement contingent. A Dáil resolution will also not be necessary when the Defence Forces contingent deploying abroad has 50 members or less. Prof Tonra will also suggest that any overseas mission should be subjected to a formal legal review before approval to ensure that it is consistent with the UN Charter and international law. This review could be carried out by the Attorney General or an independent counsel, he said. "With greater flexibility comes greater responsibility. If we are no longer to rely on the Security Council as the gatekeeper of legitimacy, if we are finally to remove the veto given to the five permanent members of the Security Council over Ireland's overseas military deployment, we must establish robust mechanisms of our own," he said. "The Defence (Amendment) Bill 2025 is a significant acknowledgement that Ireland's defence posture is evolving and needs to change in an increasingly volatile region and less stable world. "The Bill's proposals do enhance the flexibility of Government in dealing with an international crisis that requires military forces to underpin peace or guarantee security. "With that flexibility, however, comes greater responsibility "If - as proposed - UN Security Council members are not to serve as gatekeepers to overseas deployment of Irish peacekeepers, then the Government - and opposition parties - are required to step up to specify by what precise mechanism such deployments will continue to reflect Irish foreign policy values and interests," Prof Tonra will say. The draft legislation is being examined over a period of eight weeks, after which a bill will be sent for Government approval.
