State Pension to Rise to £586 a Week? Chinese E-Commerce Giant Shein Hits £2 Billion Sales in the UK! Over 3 Million Investors to Pay Dividend Tax!
- TBA
- 3 days ago
- 5 min read
State pension alert: DWP called to raise payments to £586 a week and slash retirement age to 60
The UK Department for Work and Pensions (DWP) has recently revealed a highly controversial reform proposal that suggests increasing state pension payments to £586 per week and lowering the retirement age to 60.
This initiative was launched by a citizen named Denver Johnson, who started a petition on the official UK Parliament website, outlining three major changes:
Significant increase in pension payments – £586 per week, calculated based on the national living wage for a 48-hour work week, equivalent to an annual income of around £30,000;
Earlier pension eligibility – reducing the state pension age from its current level to 60, allowing more people to enjoy benefits earlier;
Protection for overseas pensioners – introducing annual increases for British retirees living abroad, addressing the issue faced by nearly 500,000 expats whose pensions have been frozen for years.
If implemented, the weekly state pension would rise from the current £221.20 to £586, more than doubling the existing amount.
However, the petition has so far attracted only about 5,000 signatures, still far from the 10,000 required to trigger an official government response. To reach 100,000 signatures, which would prompt a debate by the Petitions Committee in Parliament, the campaign needs much broader public support.
Financial experts, however, remain skeptical. Karen Barrett, founder of financial advisory firm Unbiased, commented:
“This sounds like an unrealistic dream with enormous implementation challenges. The cost of pensions is already a major burden for the government, and doubling payments would significantly increase fiscal pressure.”
The proposal could also lead to higher taxes, as the current personal allowance is £12,570, while the suggested pension level would exceed £30,000 annually, which would push recipients into a higher tax bracket.
Currently, only about half of new state pension claimants receive the full amount, which requires 35 years of National Insurance contributions. For those on the old state pension scheme, the basic amount is just £176.45 per week.
Want to know more about UK pensions? Check out our previous posts:
Can You Claim UK Pensions Tax-Free After Moving to Europe? Will Cross-Border Pension Payments Be Double-Taxed?
Everything You Need to Know About UK Pension Annuities: The Right Way to Secure Passive Income in Retirement
Global Trend of Raising Retirement Age: At What Age Can You Retire in the UK and How Much Will You Get？
Online fashion retailer Shein’s UK sales leap by a third to more than £2bn
Latest public data reveals that online fast-fashion retailer Shein has seen its UK sales surge by one-third, surpassing £2 billion. In 2024, the company’s profits are expected to rise 56%, reaching £38.2 million, overtaking British rival Boohoo and closing in on Asos.
Shein, headquartered in Singapore but originally founded in mainland China, primarily focuses on fashion products but has recently expanded into categories such as toys and beauty products.
Despite posting £38.2 million in operating profit and paying £9.6 million in corporate tax, Shein’s strong performance is putting pressure on UK Chancellor Rachel Reeves.
Under the UK’s current de minimis exemption for low-value parcels, fast-growing online retailers like Shein and Temu benefit significantly. The rule allows overseas sellers to ship goods valued at £135 or less directly to UK consumers without paying customs duties. This policy effectively lowers costs for these platforms, intensifying competition with UK retailers and the high street.
Globally, changes to low-value import tax exemptions have also drawn attention. In May 2024, the United States scrapped its de minimis exemption for Chinese goods. The European Union is also planning to phase out its low-value parcel duty relief:
From July 2025, all low-value imports, regardless of price, will require detailed declarations to comply with the EU’s new customs security system (ICS2).
From March 2028, the EU plans to abolish the current rule that exempts goods valued at €150 or less from customs duties. Instead, a flat handling fee of €2 will apply to such parcels. Importers enrolled in the new Trust and Check Trader scheme may see this fee reduced to €0.50.
UK Cuts Dividend Tax Allowance Twice: 3.6 Million Investors Now Face Tax
As UK government borrowing rises, the Treasury is expanding the tax net to increase revenue. According to the latest data from HM Revenue & Customs (HMRC), an increasing number of ordinary investors will now have to pay dividend tax, with basic-rate taxpayers becoming the main group affected for the first time.
In the 2024/25 tax year, an estimated 3.67 million individual investors will be liable for dividend tax, a record high and almost double the number from 2022/23.
Data obtained by wealth management firm Quilter under the Freedom of Information Act shows that the dividend allowance has been cut twice in the past two years:
April 2023: reduced from £2,000 to £1,000
April 2024: further reduced to just £500
HMRC modelling indicates that these consecutive cuts have caused the number of dividend taxpayers to rise from 1.9 million in 2022/23 to 3.08 million in 2023/24, and it is expected to reach 3.665 million in 2024/25. Among them, basic-rate taxpayers (20%) will make up the largest group for the first time: around 2.15 million individuals are expected to have taxable dividend income, with 1.11 million required to pay tax, many for the first time.
Rachael Griffin, tax and financial planning expert at Quilter, commented:
“Dividend tax is quietly widening its reach. What used to be a niche tax affecting only high earners and business owners now impacts millions of ordinary investors.” Dividend Tax Rates for 2024/25:
Basic rate: 8.75%
Higher rate: 33.75%
Additional rate: 39.35%
With the allowance reduced to £500, dividend tax is projected to raise £450 million in 2024/25, rising to £810 million, £860 million, and £940 million in subsequent years (2025/26 to 2027/28).
Although HMRC states that many affected investors will not need to register for Self Assessment, with tax collected via PAYE or simple assessment, some individuals will still need to file a tax return.
We remind investors that, in an environment of falling interest rates and reduced cash appeal, many people are turning to investments for growth. To mitigate tax exposure, consider making full use of ISAs, pensions, and other tax-efficient tools.
If you are unsure about the rules or need help with compliant reporting and tax planning, you can scan the QR code below to book a free one-on-one consultation with our UK tax specialists.
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