Webb highlighted how tax policy and inflation indexing intersect for retirees.
"The recent extension of the freeze in personal allowances, combined with the continued generous indexation of the state pension means that even more people in retirement can expect to become taxpayers for the first time in the coming years," said Webb.
Revenue generation from threshold freezes extends across the entire taxpayer population.
HMRC projects 40.8 million total income taxpayers in 2026-27, compared to 36.7 million in 2023-24, with higher-rate taxpayers rising to 7.7 million.
Currently, 24 percent of taxpayers pay higher or additional rates, up from 17.5 percent ten years ago, while London sees one-third of taxpayers in top brackets.
"The Treasury has become increasingly reliant on the revenues generated by frozen thresholds," said Shaun Moore of wealth management firm Quilter.
Moore noted the structural shift in government tax strategy.
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"What began as a temporary measure has evolved into one of the most effective revenue-raising tools available to government, but the burden falls squarely on the shoulders of UK taxpayers," said Moore.
