Labour Pledges No Tax on State-Only Pension Income

The UK Labour Party has announced it will not tax the state pension for retirees who have no other source of income. This new policy aims to protect a specific group of older voters from a potential tax increase. The decision follows the government's recent move to freeze income tax thresholds. When thresholds are frozen, people can pay more tax as their income rises over time, an effect known as "fiscal drag." Labour's pledge ensures that individuals whose sole earnings are from the state pension will not be pushed into paying income tax. This measure directly addresses concerns that the frozen thresholds would financially impact pensioners reliant solely on their state pension.