Frozen thresholds see more retirees hit by tax bills Rishi Sunak's six-year freeze on tax thresholds will result in up to 900,000 pensioners receiving an unexpected income tax bill next year, according to new analysis. The freeze means that retirees claiming a married couple's tax break will now have to pay a levy on their state pensions for the first time. The marriage allowance, which allows one half of a couple to transfer a portion of their personal tax-free allowance to the other, will no longer provide significant relief due to the frozen thresholds. Former pensions minister Sir Steve Webb, now a partner at consultants LCP, said: “Pensioners on a modest income should be spared the hassle in retirement of dealing with the tax office. The Government needs to think carefully about raising the starting point for tax to make sure that pensioners with limited means no longer face annual tax bills.”