UK state pension to rise by more than £400 a year, say reports

The full UK state pension is expected to rise by more than £400 a year as a result of April’s triple lock, according to reports.

The state pension will be increased by average earning figures, which are due to be released next week, according to the treasury’s internal working calculations, reportedly seen by the BBC.

The changes would take the full state pension for men born after 1951 and women born after 1953 to about £12,000 in 2025 and 2026, after a £900 increase in 2023.

Pre-2016 retirees who may be eligible for the secondary state pension could benefit from a £300 a year increase.

The decision on a pension increase will be made by the secretary of state for work and pensions, Liz Kendall, before October’s budget. However, on Monday, the chancellor, Rachel Reeves, reaffirmed the government’s backing of the triple lock until the end of this parliament.

The estimate comes only weeks after the government’s decision to radically restrict winter fuel payments. The chancellor’s decision to ditch the winter fuel allowance for the majority of households has been met with resistance in her own party.

Reeves opted to introduce a means test for the payments, with only those on pension credit qualifying. Many critical Labour MPs said this could leave thousands of pensioners struggling to pay their household bills this winter.

A former pensions minister told the Guardian that about five out of every six pensioners living below the poverty line could be at risk of being stripped of their winter fuel payments from the government’s plans to limit the allowance.

Analysis released last week revealed that only about half of people receiving the state pension last year were getting the full weekly amount – and about 150,000 were on less than £100 a week.

The new above-inflation figures may serve as a counterweight to the government’s decision before a vote next Tuesday and after ministers came under scrutiny from opposition and Labour backbenchers, including Jessica Asato, Melanie Onn and Neil Duncan-Jordan, who have also tabled a Commons motion calling for a delay and a rethink on the plans.

“The basic state pension is worth £900 more than it was a year ago and will go up again in April next year because of the triple lock, which we have committed to for the duration of this parliament,” Reeves told MPs.

The Treasury has been approached for comment.

Source: theguardian.com