State pension ‘greater flexibility’ update over early access scheme | Personal Finance | Finance
Experts have renewed calls for a system where people can access the state pension early. The update comes after a senior DWP minister recently told MPs that this is a key question going forward.
The age when you can access your state pension is increasing gradually from April 2026, moving up from 66 in stages to reach 67 by April 2028. The full new state pension now pays £241.30 a week, after the triple lock increased payments by 4.8 percent.
The triple lock ensures payments go up each April in line with the highest of three measures: the rise in average earnings, inflation or 2.5 percent. DWP minister Torsten Bell was recently asked by the Work and Pensions Committee about the idea of granting early access to certain groups.
‘We should take that seriously’
He said: “It is a very good question, and I think we should take that seriously.” He went on to say that there are some “inequality challenges” when it comes to the state pension.
The minister explained: “You want there to be a state that is supporting people who are too ill to work, whether they are 25, 45 or 66. That is important to have in mind.
“You want a system that means people are getting help. We have chosen, for good reasons, to have a big difference in the level of income support provided to people over the state pension age and under it, in big-picture terms, because the work incentive issues are different and all the rest.”
More flexibility
One group who have long called for early access to the DWP benefit is wealth firm Aegon. Kate Smith, head of Pensions with the group, said: “We welcome the Government’s willingness to explore how the system can better reflect the fact that not everyone is able to work right up to an ever‑rising state pension age, with lower income groups more adversely impacted. On average people are living longer but not necessarily healthier.”
She set out the case for an early access scheme, saying: “At Aegon we have long made the case that a single fixed minimum state pension age increasingly fails to recognise differences in people’s health, job demands and caring responsibilities. Greater flexibility would give individuals more choice over when they access the state pension, rather than forcing a one‑size‑fits‑all approach.”
Asked how such a system could work, Ms Smith said: “Any reform must continue to be based on individual need and capability, while offering practical options and support for people who simply can’t stay in work for longer. Exploring a more flexible framework is a sensible and pragmatic step, and one we believe is worth serious consideration.”
