The Department for Work and Pensions (DWP) has responded to calls for an increase to the Basic State Pension weekly payment rate so that it matches the New State Pension.
It came after an online petition received more than 14,000 signatures. In its response, DWP said it is “not possible to make direct, like-for-like comparisons” between payment amounts under the pre-2016 State pension system and the New State Pension.
The latest UK Government figures show there are now 12.6 million people across Great Britain receiving State Pension payments. Of that overall total, there are 9.7million older people set to receive Basic State Pension payments of up to £156.20 per week, following the annual uprating on April 10, compared to 2.9 million getting the New State Pension, which is now worth up to £203.85 each week.
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However, despite a record-breaking rise in payments of the contributory benefit, it is estimated that over 1.8 million pensioners are receiving less than £100 per week in State Pension payments, the Daily Record reports.
The petition, "Increase the basic State Pension to match the new State Pension", was created by George Woods and reads: "I get the old State Pension which is substantially lower than the New State Pension.
"I want the Government to increase the Basic State Pension to match the New State Pension, so everyone receives the same State Pension. It is not fair that some pensioners are treated like second class citizens.”
He added: “Only men born on or after April 6, 1951, and women born on or after April 6, 1953, are eligible for the new State Pension, which is paid at a higher rate.”
In its response, DWP highlighted how the UK Government is “committed to a decent State Pension as the foundation of support for people in retirement” and said it is forecast to spend around £152billion in 2023/24 on benefits for pensioners, including around £124billion on the State Pension.
DWP also explained that as a result of the Triple Lock policy, the State Pension saw its biggest ever rise, increasing by 10.1%. This means the full yearly amount of the basic State Pension is over £3,000 higher, in cash terms, than in 2010 - some £790 more than if it had been uprated by Prices, and £945 more than if it had been uprated by earnings, since 2010.
Responding directly to the proposals to match the Basic State Pension with the New State Pension, DWP said: “Although the systems are different, they both reflect the National Insurance contributions an individual has made over their lifetimes. It is not the case that everybody who receives the new State Pension will immediately receive the full rate of £203.85 per week and that everyone in the pre-2016 only receives the basic State Pension.
“Under the pre-2016 system, people receive different amounts depending on the National Insurance contributions they made. In addition to the basic State Pension, people could also have qualified for the additional State Pension for the years that they paid the full rate of National Insurance.
“This means that the State could pay them in excess of £200 on top of the Basic State Pension, which may result in a much higher State Pension amount than the new State Pension.”
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