Petition calls for State Pension to be axed for one group | Personal Finance | Finance
A new online petition is urging the UK Government to overhaul the State Pension system. The petition, initiated by David Matthews, proposes three major reforms aimed at freeing up government funds that could then be used to eliminate tuition fees for all students.
The ‘review, reform and means-test the State Pension and scrap tuition fees’ petition, published on the Petitions Parliament website, calls for the abolition of the State Pension Triple Lock, which dictates annual increases, and a reduction in entitlements for pensioners who receive £20,000 or more annually from existing private defined benefit schemes.
In his most controversial suggestion, Mr Matthews proposes ending the State Pension for individuals with annual incomes over £50,000. It’s worth noting that the State Pension is a contributory benefit funded by National Insurance (NI) contributions made by workers throughout their careers, reports the Daily Record.
State Pension amounts are calculated based on individual NI contribution records, with these payments continuing until a person reaches State Pension age. The petition states: “We urge the Government to use additional money from these reforms to fund scrapping tuition fees for students.
“Current State Pension benefits cost nearly £150 billion a year – we believe this is unsustainable. We believe those with the broadest shoulders should support an approach which keeps the Chancellor within her borrowing limits and protects priority departments, like the NHS and Defence.
“We believe young people need more help. We believe £50,000 in debt for students is too much.” Once the petition garners 10,000 signatures, it becomes eligible for a written Government response.
If it reaches 100,000 supporters, the Petitions Committee would consider it for parliamentary debate – the full petition can be accessed here.
Means-testing State Pension
In December, the Department for Work and Pensions (DWP) confirmed that the Labour Government has no plans to introduce means-testing for the State Pension. These comments were made by Work and Pensions Secretary Pat McFadden while responding to Labour backbencher Catherine Fookes during parliamentary DWP questions.
The MP for Monmouthshire said: “At the Conservative party conference, the shadow Chief Secretary to the Treasury called for the State Pension to be means-tested. This has caused deep concern to pensioners in Monmouthshire who have worked hard all their lives and built up modest savings.
“Under the Conservative party’s plans, they would risk losing their state pension. Will the Secretary of State confirm that, under this Labour Government, the State Pension will remain available to all?”
In response, Mr McFadden stated: “I am happy to say that what (Ms Fookes) says about means-testing is not the Government’s policy.”
