UK Budget to shield low-income pensioners from income tax

UK Chancellor John Healey will use Wednesday's Budget to protect low-income pensioners from income tax. The full state pension is set to rise 3.9% to £13,036.40 from April, above the £12,570 personal allowance. Healey plans a new tax allowance for low-income pensioners to keep the pledge not to tax those living only on the state pension.