Proposal could see state pension boost | Personal Finance | Finance
April’s upcoming increases to the state pension and the National Living Wage have sparked calls among some Britons for the two rates to level out.
A petition is urging the government to align the state pension with the new National Living Wage based on a 35-hour work week. Next month, the National Living Wage is set to rise from £11.44 to £12.21 per hour for those aged 21 and above.
The increase means that a 35-hour working week would yield £427.35, equating to an annual total of £22,222.20 as reported by the Daily Record. The petition has garnered over 4,000 signatories and remains open until 20 July. If it hits the 100,000 mark, Parliament will consider a debate on the matter.
Ken Marshall, who initiated the proposal, highlighted the “distressing discrepancy” between the two rates as they stand. With the full new state pension offering just over £11,500 a year compared to the more than £22,000 promised by the National Living Wage to 35-hour workers, the difference is striking.
Marshall said: “We must not allow our senior citizens, who have contributed so much to our society, to struggle through their sunset years… This could ensure a better quality of life for our country’s senior citizens and help ensure that no elder person in our society has to face financial hardship.”
If the proposed changes are approved, state pensions could see an increase of over £1,700 per month, providing pensioners with £427.35 a week as opposed to the current £221.20 per week for the full new state pension or £169.50 for the full basic State Pension.
However, previous petitions calling for an increase in state pensions have been dismissed by the Government and DWP. One recent proposal suggested offering everyone over 60 a weekly state pension of £549. The petition has already garnered over 21,000 signatures.
In response, the DWP issued a written statement indicating that the Government “has no plans to make State Pension available from the age of 60 or to increase State Pension to equal 48 hours of work a week at the National Living Wage”.
The statement further read: “We have made a commitment to the Triple Lock for this Parliament which will mean spending on people’s State Pensions is forecast to rise by over £31 billion. As a result, by the end of the Parliament, the yearly State Pension of over 12 million pensioners will be up to £1,900 higher.”
It was also noted that “The State Pension and the National Living Wage have different purposes, and a direct comparison cannot be drawn. The National Living Wage is designed to protect low-income workers and provide an incentive to work.”
Regardless of whether the petition passes through Parliament, the state pension is set to increase next month by 4.1%. This was confirmed by the chancellor last October and will raise the full new state pension to £230.25 or £11,973 annually.
