State Pension Tax and Debt Relief Orders

Over 1.4 million pensioners unexpectedly received a tax bill last year, according to exclusive data shared with Money Box. The mutual life, pensions and investment firm Royal London says its research suggests more than two thirds of those who'd retired paid tax on their pension income last year. But, also, that 1 in 7 of those didn't expect to do so. Pensioners can pay tax on anything that counts as income if it goes over the personal tax free allowance of £12,570 a year. We'll discuss how that works.A record number of people in England and Wales who were overwhelmed by their debts took out what is called a debt relief order last year. DROs freeze people's debts for 12 months and then write them off. They're a cheaper, more straightforward alternative to bankruptcy although there are serious financial implications and strict criteria about who can apply for them. We'll find out more about what's behind that rise.Savings rates are still high but there's £300 billion in bank accounts earning nothing, what's behind that?And, unexpected mobile and broadband mid-contract price rises are now banned after a change by the regulator. What does that mean?Presenter: Paul Lewis
Reporter: Dan Whitworth
Researchers: Eimear Devlin and Jo Krasner
Editor: Jess Quayle(First broadcast 12pm Saturday 25th January 2025)