The chancellor will use his Budget this week to protect pensioners and those saving for their retirement, as he announces plans to shield nearly 1m people from paying income tax. John Healey is expected to confirm on Wednesday that the full state pension will rise by £489 to £13,036 – equivalent to 3. 9%. However, the rise will push about 1m people on low incomes who rely on the state pension above the £12, 570 personal allowance threshold, meaning they would be dragged into paying income tax.
