The UK Government has rejected calls for a minimum weekly State Pension payment of £416 for all men and women over the age of 60. More than 34,250 people have signed an online petition asking for the current payment rates to be increased and the official age of retirement to be lowered back to 60.
The current State Pension payment rates are worth up to £185.15 for those on the New State Pension and up to £141.85 for people receiving the Basic State Pension. The contributory benefit is administered by the Department for Work and Pensions (DWP) and will increase in April by 10.1 per cent, under the Triple Lock rule, taking the New State Pension to £203.85 per week and the Basic to £156.20.
Petition creator, Michael Thompson, said that increasing the payment rate for everyone over 60 to £416 per week would result in an annual income of £21,673.60, lifting “thousands out of poverty”.
However, responding to the petition this week, DWP said that there has been no policy change since this topic was debated on December 12, 2022 - referring to a previous petition putting forward a similar proposal which received over 111,000 signatures of support.
DWP said: “The Government has no plans to increase State Pension to £416.80 per week or reduce State Pension age for everyone to 60.”
The response continued: ‘The Government is committed to a decent State Pension as the foundation of support for people in retirement.
“We are forecast to spend around £134 billion in 2022/23 on benefits for pensioners, including around £110 billion on the State Pension. This is forecast to increase in 2023/24.”
It added that the proposal would add “significant costs” and make the system unsustainable, creating “additional burdens on the working age population” - many people may be unaware that taxpayers money goes towards the State Pension.
DWP highlighted how the full, annual amount of the basic State Pension has risen by over £2,300 since 2010 and that the UK Government will honour the Triple Lock for the 2023/24 financial year.
State PPensions will rise by 10.1 per cent in April. The full weekly basic State Pension will increase from £141.85 to £156.20 (£748.70 higher per year), and the full weekly rate of the new State Pension will increase from £185.15 to £203.85 (£975.70 higher per year).
The DWP response also highlighted additional benefits and support for people of State Pension age including free bus passes, Winter Fuel Payments and the new cost of living payments - worth up to £1,350 over 2023/24.
DWP said: “Around 1.4 million of the most vulnerable pensioners also receive some £5 billion of Pension Credit, which tops up their retirement income and is a passport to other financial help such as support with housing costs, council tax, heating bills and a free TV licence for those over 75.”
Pension Credit is a means-tested benefit and provides a top-up for people of State Pension age to a weekly minimum amount, (currently £182.60 for single people and £278.70 for couples, increasing to £201.05 and £306.85 respectively, from April.
These amounts may be higher for those with caring responsibilities, a severe disability or certain housing costs.
Commenting on the proposal to rollback State Pension age to 60, DWP said: “Raising State Pension age (SPa) in line with life expectancy changes has been the policy of successive administrations over many years.
“These changes to SPa were made over a series of Acts by successive governments from 1995 onwards, following public consultations and extensive debates in both Houses of Parliament.
“We have no plans to reverse changes to SPa. Reforms have focused on maintaining the right balance between the affordability, sustainability of the State Pension, and fairness between generations.”
You can read DWP’s full response on the petitions-parliament website here.
The petition will be considered by the UK Government for debate if it reaches 100,000 signatures.
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