The UK Government has responded to the proposal
The UK Government has dismissed proposals to make the State Pension available from the age of 60 or to increase payments to £586 per week, in response to an online petition. The petition, which has garnered support from over 18,800 people across the UK, was posted on the Petitions Parliament website.
Denver Johnson, the creator of the petition, suggests increasing payments to match 48 hours each week at the National Living Wage rate of £12.21 per hour. This would provide more than 12 million current State Pension recipients – and those over 60 – with £2344 every four-week payment period, equating to some £30,476 annually.
This proposed increase would also apply to approximately 453,000 retirees whose State Pension has been frozen at the point of emigration due to the absence of a reciprocal agreement with the UK Government in their new country of residence, reports the Daily Record.
In a written response to the petition, the Department for Work and Pensions (DWP) said: “The Government is committed to supporting current and future generations of pensioners and giving them the dignity and security they deserve in retirement.
“Our commitment to the Triple Lock through this Parliament will benefit over 12 million pensioners. From the end of this Parliament, spending on the State Pension as a result of our commitment to protect the Triple Lock is forecast to be around £31billion more a year, compared with 2024/25.”
The DWP has outlined how its system of state, private, and workplace pensions provides a solid foundation for security in retirement. It emphasised that the New State Pension, introduced in 2016, was designed to be a “simpler, clearer, sustainable foundation” for private saving, including workplace pensions supported through Automatic Enrolment.
The DWP added: “The Government also takes seriously the need to ensure future retirees have a decent standard of living. That is why the Government has recently launched the Pensions Commission to ensure our pensions system delivers this in the decades ahead.”
It also highlighted that supplementary benefits such as Pension Credit can assist pensioner households on a low income. This means-tested benefit also unlocks additional support including help with housing and heating costs, Council Tax and free TV licences for over-75s.
Winter Fuel Payments will also be distributed to pensioners over 66 with an income at, or below £35,000. These payments will be issued throughout November and December, with letters advising of payment amounts being sent out from this month.
The DWP concluded by saying: “Pensioners with a long-term health condition or disability may also be eligible for additional-costs disability benefits. In England and Wales these are Attendance Allowance, Disability Living Allowance and Personal Independence Payment.”
Responding to the petition’s proposals, the DWP said: “There are no plans to bring State Pension age back down to 60.
“Increases to State Pension age have been in legislation since the Pensions Act 1995 and there have since been a number of legislated increases to State Pension age introduced under successive Governments. As longevity has increased and our society aged, State Pension age rises have maintained fairness between generations and protected the public finances.”
The complete response can be found on the Petitions Parliament website. With 100,000 signatures of support, the proposals would be considered by the Petitions Committee for debate in Parliament.
Annual State Pension uprating
The Triple Lock ensures State Pensions rise each year according to whichever is highest: average annual earnings growth from May to July, Consumer Price Index inflation rate (CPI) in the year to September, or 2.5 per cent. The Triple Lock is presently set to be determined by the earnings growth component of 4.7 per cent (including bonuses).
The September CPI will be released on October 22 and is predicted to reach 4 per cent. A 4.7 per cent uprating on the existing State Pension would result in people receiving the following sums.
Full New State Pension
- Weekly: £241.05 (from £230.25)
- Four-weekly pay period: £964.20
- Annual amount: £12,534
Full Basic State Pension
- Weekly: £184.75 (from £176.45)
- Four-weekly pay period: £739
- Annual amount: £9,607
Chancellor Rachel Reeves is set to confirm the annual uprating for the state Pension and benefits at the Autumn Budget on 26 November.