MPs will debate a petition calling for pensioners to receive double the standard income tax threshold when Parliament convenes on June 15.
The campaign, which gathered 119,206 signatures before closing on the Parliament website, demands that retirees be granted a tax-free earnings limit of £25,140 rather than the current £12,570.
Treasury ministers will face pressure to clarify their stance on the proposal during the scheduled debate.
Chancellor Rachel Reeves now confronts mounting calls to address concerns about pensioner taxation, with her department obligated to outline its policy position before MPs.
MPs will debate a petition signed by more than 100,000 Britons regarding the state pension
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The personal allowance currently sits at £12,570, the threshold at which income tax becomes payable.
Projections indicate the state pension will surpass this figure by 2027, a consequence of the triple lock uprating mechanism.
Ms Reeves has stated that individuals receiving only the full new state pension will not incur a tax liability.
However, many pensioners with additional income sources face being drawn into the tax net.
Rachel Reeves snapped preparing for second Budget | TREASURYLATEST DEVELOPMENTS
How the state pension triple lock has changed over the years | GB NEWS / FIDELITY INTERNATIONAL The Chancellor's Budget 2025 statement maintained frozen income tax thresholds until 2031, a move that could significantly affect state pension recipients as their payments continue rising under the triple lock guarantee.
The petition specifically requests a new tax code exclusively for state pensioners, set at twice the basic threshold.
Under this proposal, retirees would benefit from a higher tax-exempt limit while wealthier pensioners would still contribute through taxation.
The petition states: "We think that people with small private or workplace pensions are currently being taxed unfairly."
State Pension vs Personal Allowance: Year-by-Year Breakdown | GBNEWSCampaigners argue that those with modest occupational or private pension top-ups are disproportionately affected by the current system.
The proposal would allow pensioners to accumulate earnings up to £25,140 before facing any income tax liability, effectively doubling their tax-free allowance compared to working-age individuals. The Treasury has rejected the proposal, describing it as both expensive and poorly targeted.
In its official response, the department stated: "The personal allowance is already the highest amongst G7 countries. Doubling this allowance for all pensioners would be costly and untargeted - disproportionately benefiting higher-income pensioners."
The Government emphasised its commitment to the triple lock, which will boost the basic and new state pension by 4.8 per cent next April, increasing pensioner incomes by up to £575 annually.