Thousands of Britons are backing a petition to stop the state pension being taxed, with more than 81,000 signatures already gathered to lobby the Labour Government to change tax allowance rules.
The campaign was launched by Dennis Reed on behalf of charity Silver Voices, a UK-wide organisation representing the over 60s.
It comes amid growing concerns that the state pension will soon exceed the personal tax allowance threshold, potentially forcing pensioners to pay income tax on their retirement benefit alone.
The full state pension is set to increase by £470 a year to £11,973 next month, sitting just below the personal allowance of £12,570.
With tax thresholds frozen until April 2028, the pension will inevitably exceed the tax threshold by April 2027, reaching approximately £12,578 per year.
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A petition is calling on the Government to stop the state pension from being taxed
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This means thousands of pensioners could be taxed on just £8 per year, with a tax bill of £1.60.
Silver Voices' petition is urging the Government to take action to prevent older Britons from being levied with an increased tax burden.
Many older people with small private pensions are already being brought into the tax system for the first time due to frozen thresholds.
The charity's petition was inspired by a 75-year-old widow named Colette, who is already having to pay more to HM Revenue and Customs (HMRC).
She receives a proportion of her late husband's State Pension alongside her own, which takes her over the tax threshold by about £1,000.
Even her small NHS pension of £37 a month, earned as a GP practice nurse, is being taxed.
Fiscal drag has pulled pensioners into higher tax brackets PAReed said: "After Colette lost her Winter Fuel Payment this winter, this is a double whammy on her quality of life in retirement.
"If the basic State Pension starts being taxed it undermines the whole principle of a safety net in retirement to ensure that the basic necessities in life can be afforded.
"And if Triple Lock increases each year are also taxed then that safeguard, to protect against sudden increases in the cost of living, is also undermined."
The campaign highlights how taxation could negate the very purpose of pension protections. Sir Steve Webb, a former pensions minister under the coalition Government and partner at LCP, criticised the situation.
"A combination of an increasing state pension and frozen tax thresholds means we will soon be in the nonsensical situation where the new state pension will be just a few pounds above the income tax threshold," he said.
"This means that people whose only income is the standard new state pension will be dragged into income tax. Long gone are the days when retirement meant no longer having to deal with the tax office."
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Rachel Reeves is being called to relieve the tax burden on older Britons
PAThe petition from Silver Voices has already passed the 10,000 signature threshold that triggers a Government response.
If it reaches 100,000 signatures, Parliament will consider holding a debate on the issue. The goal of the petition creators is to reach 150,000 signatures.
On the petition's website, the charity states: "Will you stand up to protect older people and call on the Chancellor to increase the tax threshold for state pensioners by at least £1,000 in her Spring Statement and commit to increasing the tax threshold in line with the Triple Lock increases in future years?"
Chancellor Rachel Reeves is set to unveil any changes to fiscal policy during her upcoming Spring Statement on March 26.
