UK Government gives final verdict on £586 state pension boost | Personal Finance | Finance
The UK Government has shared its final verdict on plans to increase the State Pension to £586 per week. In a response to an online petition, the officials have dismissed the proposal to make the State Pension available from the age of 60. The State Pension age is set to increase from 66 to 67 between 2026 and 2028.
The petition was posted on the Petitions Parliament website and has received support from over 18,800 people across the UK. Denver Johnson, the petition’s creator, suggested increasing payments to match 48 hours each week at the National Living Wage rate of £12.21 per hour. The increase would have provided more than 12 million current State Pension recipients—and those over 60—with £2344 every four-week payment period, equating to some £30,476 annually.
The proposed increase would have also applied to approximately 453,000 retirees whose State Pension has been frozen at the point of emigration due to the absence of a reciprocal agreement with the UK Government in their new country of residence, reports the Daily Record.
In a written response to the petition, the Department for Work and Pensions (DWP) said: “The Government is committed to supporting current and future generations of pensioners and giving them the dignity and security they deserve in retirement.
“Our commitment to the Triple Lock through this Parliament will benefit over 12 million pensioners. From the end of this Parliament, spending on the State Pension as a result of our commitment to protect the Triple Lock is forecast to be around £31billion more a year, compared with 2024/25.”
The Department for Work and Pensions (DWP) explains that its mix of state, private, and workplace pensions helps people build financial security for retirement. It highlights the New State Pension, launched in 2016, as a simpler and more straightforward way to support private savings, including workplace pensions made easier through Automatic Enrolment.
It stated: “The Government also takes seriously the need to ensure future retirees have a decent standard of living. That is why the Government has recently launched the Pensions Commission to ensure our pensions system delivers this in the decades ahead.”
It also highlighted that supplementary benefits such as Pension Credit can assist pensioner households on a low income. This means-tested benefit also unlocks additional support including help with housing and heating costs, Council Tax and free TV licences for over-75s.
Responding to the petition’s proposals, the DWP said: “There are no plans to bring State Pension age back down to 60.
“Increases to State Pension age have been in legislation since the Pensions Act 1995 and there have since been a number of legislated increases to State Pension age introduced under successive Governments. As longevity has increased and our society aged, State Pension age rises have maintained fairness between generations and protected the public finances.”
