In response to a widely supported petition, the UK government has firmly stated there are “no plans” to reduce the State Pension age to 60 or to increase weekly payments to £586.
The petition, initiated by Denver Johnson, garnered over 18,800 signatures, advocating for significant changes to the State Pension system.
The petition proposed that the State Pension be made available to all individuals aged 60 and above, with weekly payments set at £586.08. This amount was calculated based on 48 hours of work per week at the National Living Wage rate of £12.21 per hour.
Supporters argued that such an increase would provide a more realistic and dignified income for retirees, especially as living costs continue to rise.
The proposal also included extending this benefit to approximately 453,000 British expatriates whose pensions are currently frozen due to the lack of reciprocal agreements with the UK government.
The Department for Work and Pensions (DWP) responded to the petition, stating:
“The Government has no plans to make the State Pension available from the age of 60 or for it to equal 48 hours a week at the National Living Wage.”
The DWP emphasized its commitment to supporting current and future generations of pensioners, highlighting the Triple Lock system, which guarantees annual increases in the State Pension by the highest of inflation, average earnings growth, or 2.5%. This system is projected to cost an additional £31 billion annually by the end of the current Parliament.
Introduced in 2011, the Triple Lock system ensures that the State Pension increases each year by the highest of:
- Consumer Price Index (CPI) inflation
- Average earnings growth
- 2.5%
For the upcoming year, the increase is expected to be based on average earnings growth, which stands at 4.7%, including bonuses. This would raise the full New State Pension to £241.05 per week, amounting to £12,534 annually. The full Basic State Pension would increase to £184.75 per week, totaling £9,607 annually.
While the government’s response to the petition was a rejection of the proposed changes, it reiterated the availability of supplementary benefits to support pensioners:
- Pension Credit: A means-tested benefit that guarantees a minimum income for low-income pensioners, unlocking additional support such as help with housing and heating costs, Council Tax, and free TV licences for those over 75.
- Winter Fuel Payments: Available to pensioners over 66 with an income at or below £35,000, providing financial assistance during the colder months.
- Disability Benefits: Including Attendance Allowance, Disability Living Allowance, and Personal Independence Payment in England and Wales; and the Scottish Government’s Pension Age Disability Payment, Adult Disability Payment, and Scottish Adult Disability Living Allowance in Scotland.
The UK government’s firm stance against lowering the State Pension age to 60 and increasing weekly payments to £586 reflects its broader strategy to ensure the sustainability of the pension system.
While the proposed changes were not accepted, the government’s commitment to the Triple Lock system and the availability of supplementary benefits aim to provide ongoing support to pensioners.
Individuals seeking to enhance their retirement income may consider exploring additional savings options, such as private pensions and workplace schemes, to supplement the State Pension.
The Triple Lock system is a government policy that guarantees the State Pension increases each year by the highest of inflation, average earnings growth, or 2.5%, ensuring that pensioners’ incomes keep pace with the cost of living.
Pensioners over the age of 66 with an income at or below £35,000 are eligible for Winter Fuel Payments, which provide financial assistance to help cover heating costs during the winter months.
Approximately 453,000 British expatriates receive a frozen State Pension due to the lack of reciprocal agreements between the UK and their residing countries. These individuals do not receive annual increases in their pension payments.
