Nicholas Dawson

Lloyds Bank says students must pay at least £500 into its Student Account by 30 October 2026 to qualify for a £100 cash bonus, but the money does not need to remain in the account for a specified period. Eligible customers may also receive up to £120 in Deliveroo vouchers over six months by completing at least 20 valid debit-card transactions each month; each monthly voucher is valid for 30 days.

HMRC is sending finalised tax-credit award notices to some former claimants after discovering that certain cases were incorrectly marked as finalised during the transition to Universal Credit. The letters may concern claims dating back many years and do not necessarily indicate an overpayment or underpayment. Recipients should check the details and contact HMRC by the stated deadline if anything is incorrect; HMRC says it is also reviewing historic accounts involving unresolved or unpaid awards.

The UK state pension age is currently rising from 66 to 67 between April 2026 and April 2028, while legislation schedules a further increase to 68 between 2044 and 2046. A 2023 review proposed bringing that second increase forward to 2041–2043, and an Office for Budget Responsibility projection suggested it could be completed by 2039. Aegon pensions chief Kate Smith strongly opposes accelerating the change, arguing that it would disproportionately harm vulnerable people and benefit wealthier people who tend to live longer. Aegon instead supports allowing everyone to claim the state pension up to three years early at a reduced rate, particularly helping manual workers, carers and people with poor health.

A retirement expert warns that the full new UK State Pension uses more than 99% of the £12,570 personal allowance, leaving little tax-free room for private pension income. Larger withdrawals can push pensioners into higher or additional-rate tax bands, substantially increasing their HMRC bill. The Government has announced plans to ensure people whose only income is the State Pension will not pay income tax, but the legislation and full details have not yet been published.

HMRC outlines rules for people who continue working while receiving their state pension, confirming that National Insurance contributions stop at state pension age. Because the state pension age is rising from 66 to 67 between 2026 and 2028, many will pay National Insurance for longer. A further increase to 68 is planned for 2044–46. HMRC directs people to its online guidance hub for managing tax and pensions in retirement.

Martin Lewis explains that the state pension is taxable but not automatically taxed, clarifying that payments count toward the income tax threshold, which is currently frozen at £12,570. Additional income from work, pensions or savings can push recipients over this limit, leading to tax liability. He highlights how National Insurance credits accumulate entitlement and notes that while 35 years of contributions is a general guide for receiving the full pension, individual circumstances vary. With the state pension insufficient for most people to meet retirement income needs, he urges workers to begin saving early through private or workplace pensions.