More than one million UK pensioners are in higher tax bands, according to reporting that points to rising numbers paying the 40% and 45% rates. The share of pensioners liable for the 40% higher rate tax has doubled over the past five years to 977,000, while the number paying the 45% additional rate has trebled to 115,000.
The figures are linked to a policy of freezing income tax thresholds, which news coverage says is set to continue until 2031. By keeping the thresholds fixed, more people can move into higher bands over time as their income—including pension income—rises with inflation or other changes.
Both outlets cite the same overall pattern: a growing concentration of pensioners in top tax brackets and long-term threshold freeze. However, the provided sources are limited to the key statistics and the freeze timeline, without detailing causes beyond the threshold policy or offering separate breakdowns by region or income type.
