DWP update over £2,100 extra payments into pensioner bank accounts | Personal Finance | Finance

The DWP has issued an update about some extra payments going out to pensioners. A minister issued a statement after a question from an MP.

DUP MP Jim Shannon asked Labour ministers what steps the Government is taking “to prevent pensioner poverty” in a written question in Parliament. DWP minister Torsten Bell provided a response, outlining various support that is available for older Britons.

He said: “The Government is committed to supporting pensioners, ensuring they have financial security and dignity in retirement.” He pointed to a key pay increase coming in for pensioners.

The minister said: “From 6 April, both the basic and new state pensions will increase by 4.8 percent, benefitting over 12 million pensioners by up to £575. Our commitment to maintain the triple lock throughout this Parliament – helping to raise the value of the state pension over time – will see pensioners’ yearly incomes rising by up to £2,100.”

The triple lock policy ensures the state pension increases each April in line with the highest of 2.5 percent, the rate of inflation or the rise in average earnings. Mr Bell went on to speak about what other help is available.

A vital safety net

The minister said: “Pension Credit continues to provide a vital financial safety net by guaranteeing a minimum level of income – called the Standard Minimum Guarantee – which will also increase by 4.8 percent from 6 April, protecting pensioners on the lowest incomes.” This benefit tops up your income up to a minimum amount.

With the April increase, the top up for single claimants will go up from £227.10 a week to £238 a week, while the couple’s rate will increase from to £363.25 a week to £363.25 a week. It’s worth checking if you are eligble for the benefit as it provides access to other Government help.

Previous DWP figures suggest the benefit is worth around £4,300 in extra support on average. Mr Bell said: “Crucially, receipt of Pension Credit also opens the door to a whole range of additional support, which is why maximising Pension Credit take-up is a key departmental priority.

“We have been running the biggest campaign to date encouraging pensioners and their families to check their eligibility and to apply.” He pointed to some other support available for pensioners.

Mr Bell said: “Housing Benefit continues to support pensioners who rent, and pensioner homeowners on income-related benefits, including Pension Credit, may receive Support for Mortgage Interest to help with interest on eligible secured loans. And around nine million pensioners in England and Wales will benefit from a Winter Fuel Payment from winter 2025/26.” The Winter Fuel Payment for the 2025/2026 winter was worth between £100 and £300.

More help to be rolled out

The minister also spoke about what other support is coming in. He said: “From April, the new Crisis and Resilience Fund will provide a long-term mechanism for local authorities to support vulnerable households at risk of hardship.

“The fund will provide a safety net for people on low incomes who face financial crisis, including unforeseen increases in essential costs, and need immediate support.” This support will be provided through local authorities – contact your local council to find out more.

Mr Bell spoke about some other work being done to improve support for pensioners. He said: “We have also revived the Pensions Commission, which will make recommendations to Government on a future pensions framework that is strong, fair and sustainable – one that delivers financial security in retirement and supports those approaching retirement.

“The Pensions Commission is expected to publish an interim report this Spring.”