Treasury data for 2022-23 shows 5.45 million over-70s paid income tax, compared to 5.23 million under-30s. This reversal of pre-lockdown trends is attributed to the triple lock increasing state pension payments, pushing more pensioners into the tax bracket, and rising youth worklessness leaving young people outside the job market.

The data highlights the UK’s growing reliance on pensioner income tax. Additionally, the number of top-rate taxpayers increased by 10% to 600,000, while higher-rate taxpayers rose by 680,000 to 5.1 million.

The triple lock, ensuring pension rises by at least 2.5% annually, has resulted in above-inflation increases, drawing more pensioners into the tax net after a six-year freeze on personal allowances. Concurrent youth worklessness has left nearly one million 16-24 year-olds not in employment, education, or training.

Over-70s contributed £19.1 billion in income tax in 2022-23, surpassing the £18.3bn paid by under-30s, despite representing a smaller population share. Institute for Fiscal Studies analysis indicates two-thirds of pensioners now pay income tax, compared to 64.4% of working-age adults.

While basic-rate taxpayers contribute a third of revenue, higher and top-rate taxpayers each contribute another third. The number of top-rate taxpayers is expected to rise further after the threshold was lowered to £125,140.

The Office for Budget Responsibility forecasts 3.7 million more taxpayers by 2028-29 due to frozen allowances. There will be 2.7 million more higher-rate and 600,000 more additional-rate taxpayers than if allowances had kept pace with inflation. The tax-free allowance is projected to rise to just over £12,800, significantly less than the £16,310 it would reach if indexed to inflation, with further threshold freezes potentially on the horizon.