Martin Lewis issues urgent State Pension warning ahead of Budget

Martin Lewis issues urgent State Pension warning ahead of Budget The personal finance guru said he would be looking out for details on a key issue affecting State Pensioners on Wednesday. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Chris Samuel 14:37, Sun, Oct 25, 2026 Updated: 14:40, Sun, Oct 25, 2026 The Chancellor John Healey (pictured) will deliver his first Budget in days. (Image: Getty) Martin Lewis has issued a message about a key thing he'll be looking out for in next week's Budget about State Pensioners . John Healey will deliver his first Budget as Chancellor on Wednesday, October 28, and faces the difficult task of working within Britain's constrained fiscal resources whilst looking for measures that boost economic growth. Mr Lewis, a personal finance guru and founder of MoneySavingExpert.com, says he will be looking for further detail about a scheduled change to the State Pension. The full rate of the new State Pension is currently £241.30 a week, though the amount you get may differ depending on various factors. These include: you were contracted out before 2016; the number of National Insurance qualifying years you have; and if you paid into the Additional State Pension before 2016, the GOV.UK website explains. Under the triple lock commitment, the State Pension rises by one of three measures annually: wage growth; inflation; or 2.5% - whichever is highest. This week it was confirmed that the State Pension would rise by 3.9% when it's uprated in April next year, based on wage growth figures for the May to July period of 2026, which were confirmed to outstrip inflation. Article continues below ADVERTISEMENT Years of increases mean from April, the annual rate for those with full entitlement will rise to around £13,040. It means for the first time the State Pension is higher than the £12,570 tax-free personal allowance, which has been frozen for more than five years. It raised concerns that pensioners who had saved up all their lives and relied on the pension would ironically start to lose out due to the uprating. The Government confirmed that older people solely living off their State Pension wouldn't be taxed on income in excess of the allowance. More information will be provided in the Budget, the Treasury said. Mr Lewis included it in a list of things he'll be keeping a close eye on. Writing on X, he said: "We now know someone who ONLY gets the full new state pension won't pay tax. But it's very important we understand the mechanism. Article continues below ADVERTISEMENT "For example, if someone has just £10 a year of other earnings, will they still have to pay tax? If so, that £10 of earnings will effectively cost them about £100 – the tax they'd pay without the exemption." Article continues below ADVERTISEMENT Older state pensioners given boosted £192 per week after triple lock rise Brits with high blood pressure can qualify for £10,119 in DWP payments | Personal Finance | Finance | Express.co.uk John Healey vows to control public spending in upcoming budget A Treasury spokesperson said: “In line with the commitment made at Budget 2025, pensioners who only just the exceed the personal allowance will not have the administrative burden of paying small amounts of tax in this Parliament. The Chancellor will set out further details on how that commitment will be delivered at the Budget.” Get personal finance news, money saving tips and advice plus selcted offers and competitions I would like to receive emails from the Daily Express featuring our latest products, services, offers, and promotions from across the Reach Plc family . Subscribe Invalid email You agree you are 18 or over. We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. You can unsubscribe at any time. More Info . State Pension Martin Lewis Triple lock DWP Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments