Labour says ‘many’ state pensioners will see payments increase by £1,000 | Personal Finance | Finance
State pension payments could increase by over £1,000 over the coming years, a Labour minister has said.
The new Labour Government has committed to keeping the triple lock during this Parliament, after the policy delivered an 8.5 percent increase in payments this past April and a record 10.1 percent boost in 2023.
Health minister Andrew Gwynne said in response to a question in Parliament: “Through our commitment to protect the triple lock, over 12 million pensioners will benefit, with many expected to see their state pension increase by more than £1,000 over the next five years.”
The full new state pension currently pays £221.20 a week, or £11,502.40 a year. Some analysts are expecting the average earnings part of the triple lock to be used to determine the increase for next April, which would mean a four percent increase, boosting the full new state pension by £460 a year.
The full basic state pension is currently £156.20 a week. One concern with the rise in state pension payments is they could soon be subject to income tax, with the threshold for paying the tax frozen at £12,570 a year.
The update from Mr Gwynne came in response to a question in Parliament about changes to Winter Fuel Payments and if there would be an assessment of how this could impact the health of older people, as millions of people will no longer be eligible for the support.
Mr Gwynne said in response: “The Government is committed to a preventative approach to the public’s health. Keeping people warm and well at home, and improving the quality of new and existing homes, will play an essential part in enabling people to live longer, healthier lives, and reducing pressures on the National Health Service.
“In deciding on Winter Fuel Payment eligibility, the Government had regard to the equality analysis, in line with the Public Sector Equality Duty requirements.”
He also said the Government would maintain support for vulnerable households in the winter months.
Mr Gwynne commented: “Support includes delivering the £150 Warm Home Discount for low-income households from October 2024, extending the Household Support Fund with £421 million, to ensure local authorities can support vulnerable people and families.”
The eligibility for Winter Fuel Payments is tightening so whereas before it was a universal benefit for those of state pension age, it is now being restricted to people on certain means-tested benefits, such as Pension Credit.
You can check how much state pension you are on track to receive using the state pension forecast tool on the Government website.
A person usually needs 30 years of National Insurance contributions to get the full basic state pension and 35 years of contributions to get the full new state pension.
You need at least 10 years of contributions to get any amount. The state pension age for men and women is currently 66.
