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Britain's pensioners are being caught in a stealth tax trap - forced to hand over more of their retirement income to the Treasury.

A toxic combination of frozen tax thresholds and rising state pension payments is quietly pulling hundreds of thousands more retirees into the tax net every year.

A report published this week by the House of Commons Library has laid bare how older people - many on fixed and modest incomes - are being blindsided by growing tax bills they never expected to face.

It comes as the personal tax allowance - the amount you can earn before paying income tax - has been stuck at £12,570 since 2021/22, despite soaring prices and increases in the state pension to reflect the soaring cost of living.

Under the Government's triple lock guarantee, the full new state pension has risen to £221.20 a week - just over £11,500 a year. That puts many pensioners within a whisker of the tax threshold, even before counting any private or occupational pension savings.

Financial expert Fiona Peake, of Ocean Finance, said the number of pensioners dragged into the tax system is surging.

"Nearly 18 million more people are expected to be paying income tax by 2027, and almost half of them will be over 60," she explained.

The personal allowance freeze - first introduced by the Conservatives in order to rebuild public finances after Covid and the energy crisis - has already raised billions in extra revenue without the political fallout of a headline tax hike.

But critics say it disproportionately hurts pensioners and low earners, amounting to a stealth tax that chips away at household budgets.

"Add even a modest private or workplace pension, and suddenly you've got a tax bill," said Ms Peake. "This amount is just a few hundred pounds shy of the personal allowance," she pointed out.

Experts warn many pensioners are unaware of the looming bill. The new report makes clear that while the Department for Work and Pensions pays the state pension without deducting tax, it is still classed as taxable income.

Often, retirees only discover they owe money when they receive a tax code change or a demand from HMRC.

"It's especially tough for those on a fixed income who are already watching every penny," Ms Peake added. "With inflation expected to rise again this year, it's yet another blow to pensioners' pockets."

Previously, those relying solely on the state pension typically earned too little to pay tax. But with inflation driving up benefit payments under the triple lock - which guarantees annual increases in line with the highest of wage growth, inflation, or 2.5% - more older Britons are being nudged over the threshold.

Meanwhile, the Chancellor Rachel Reeves has confirmed that the personal allowance will remain frozen until at least 2028 - ensuring this silent expansion of the tax base continues for years to come.

Campaigners are calling for urgent reform to stop what they say is an unfair burden being placed on those who have worked hard and saved responsibly all their lives.