Pensioners face “marriage allowance mayhem” due to rising state pension. Who will pay the unexpected tax bill?

Hundreds of thousands of pensioners - mainly wives - could get unexpected tax bills as a result of the frozen personal allowance and soaring state pension, according to former pensions minister Steve Webb.

Laughing couple
(Image credit: Getty Images)

Hundreds of thousands of women pensioners who have taken advantage of the marriage allowance could face unexpected tax bills due to the soaring state pension and frozen personal allowance.

Former pensions minister Steve Webb says it could spell “mayhem” and “chaos” for wives who handed over part of their tax-free allowance to their spouse and now find they are taxpayers for the first time.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.