State Pension Tax

Mikayala

Hello, I saw the interview with the Chancellor and wanted to ask about an existing tax bill my mum have received.
A bit of background, mum was a nurse in the NHS for over 45 years. She never paid into any pensions as she was made a single mum when my dad left and had 2 small children to raise so simply couldn't afford it. 
She retired at the age ot 67 and is in receipt of an enhanced state pension. This is her only income and she lives in a council house paying full rent and full bills. She has too much pension to be able to claim any benefits.
Last year she received a tax bill for £100, which was a shock and I paid it for her as she was panicked about how she was going to pay. Well this year she has received a bill for £300 due by the end of January 2026.
Having seen the interview with Rachel Reeves saying people won't pay tax on the state pension this Parliament, I am wondering if that applies to the bill mum currently has or whether this doesn't kick in until 2027 when the majority of pensions move into the taxable bracket.
Any help gratefully received.

born_again

How much savings does she have?

zagfles

This is what it says in the budget document (my highlighting):

"4.167 State Pension and Simple Assessment – The government will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28 if the new or basic State Pension exceeds the Personal Allowance from that point. The government is exploring the best way to achieve this and will set out more detail next year."

So it sounds like it won't apply to people who get "increments" which I presume means SERPS/S2P, so by the sounds of it your Mum would still have to pay tax, although the details still aren't clear. 

Keep_pedalling

Your mother will have an income just over £14k pa to have to pay £300 in income tax. Pensioners who get nothing but the basic state pension will not pay IT but your mother is also receiving the enhanced pension (SERPS) so I do not believe it will apply to her.

Unfortunately opting out of the NHS pension scheme was a mistake and not opting back in later in life was an even worse one. 

Keep_pedalling

Are you sure she is not eligible for things like housing benefits or council tax support? Unless she have significant savings she should qualify on such a low income.