Pension Age Rise and April Tax Changes

This Moneybox podcast explores major financial and social changes set to take effect from April 2026, beginning with the gradual rise of the UK state pension age from 66 to 67 for those born on or after 6 April 1960. The change, phased over two years, will delay pension access by up to 12 months for affected individuals, costing them potentially £13,000 in lost income and impacting linked benefits like pension credit and winter fuel payments. Reporters speak with retirees and workers in Liverpool, many expressing frustration and financial strain, while experts like Zoe Alexander from Pensions UK emphasize the policy’s sustainability rationale, driven by rising life expectancy and the need to save £10.5 billion annually. The episode also highlights a new report from the Centre for Homelessness Impact, revealing that rent arrears, council tax debt, and unpaid utilities are the primary drivers of homelessness, with personal stories like Benji’s illustrating how debt spirals can trap people in cycles of instability. The podcast urges councils to shift from punitive enforcement to preventative, human-centered debt resolution. Additionally, the FCA announces a free redress scheme for 12 million mis-sold car finance deals, with average compensation of £830. Tax changes include higher dividend taxation, reduced ISA allowances from 2027, and the end of inheritance tax exemptions for farmers and family businesses, with pensions now subject to inheritance tax from April 2027.