The Department for Work and Pensions (DWP) has responded to a petition calling for the UK Government to increase the old and new State Pensions by £500 a year to help older people cope with the cost of living crisis following the temporary removal of the triple lock guarantee for the 2022/23 financial year.
The online petition, “Increase the basic State Pensions by £500 a year as an emergency measure,” was created last month and has received more than 16,259 signatures of support, some 6,000 above the threshold needed for the UK Government to officially respond.
In a lengthy response, the DWP said that it has “no plans to increase the State Pension by £500 a year as an emergency measure” adding that it has “never paid our pensioners more” before detailing all the additional support and benefits available to pensioners across the country.
The DWP said: “The [UK] Government has no plans to increase the State Pension by £500 a year as an emergency measure. We have never paid our pensioners more.
“This year, we will spend over £129 billion on the State Pension and benefits for pensioners in Great Britain. From April, the full yearly amount of the basic State Pension will be around £720 more in 2022/23 than if it had been up-rated by prices since 2010. That’s a rise of over £2,300 in cash terms.”
It continued: “In 2020/21, we introduced Primary legislation to increase State Pensions by 2.5 percent, higher than both inflation at 0.5 per cent and falling wages. The pandemic had caused the unusual fall in wages and meant if we had not taken that action, State Pensions would have been frozen for 2021/22.
“We also made a temporary change to the law to ensure the basic and new State Pensions increase by the higher of price inflation or 2.5 per cent for 2022/23. This means in April State Pensions will rise by 3.1 per cent. Taken together, this means that over the last two years, we have delivered an increase of more than 5.6% in the basic and new State Pension.”
The DWP reiterated that the suspension of the Triple Lock rule for one year is a “temporary response to exceptional circumstances caused by the pandemic”.
It said: “This approach is fair to both pensioners and younger taxpayers. The [UK] Government remains committed to the Triple Lock for the remainder of this Parliament.”
The response went on to highlight benefits people of State Pension age may be able to claim, including Pension Credit, Cold Weather Payments, Winter Fuel Payment and the Warm Home Discount.
The Dwp explained: “Pension Credit can provide further benefits and we want to ensure people receive all the support they are entitled to.
“Around 1.4 million eligible pensioners across Great Britain already receive some £5 billion in 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.”
It also highlighted how the UK Government is “committed to tackling fuel poverty and protecting low income and vulnerable households” and said the latest figures show 200,000 fewer pensioners in absolute poverty, both before and after housing costs, compared to 2009/10.
Another benefit mentioned was the Winter Fuel Payment which provides older people with support for their energy bills over winter worth £200 every year for households with someone who has reached State Pension age and is under age 80 - or £300 for households with someone aged 80 and over.
Cold Weather Payments is another benefit mentioned in the response. This is a £25 payment for every seven-day period of freezing temperatures between November 1 and March 31.
The Warm Home Discount Scheme provides short-term support with energy bills through rebates, helping households stay warm and healthy in winter. The scheme provides those getting the Guarantee element of Pension Credit a rebate off their winter energy bill - providing their supplier is part of the scheme.
DWP said: “We have already consulted on expanding the Warm Homes Discount by almost a third from 2.2 million to 3 million vulnerable households and increasing the rebate value to £150 from £140 each year, increasing the cost from £350 million to £475 million.
“We also consulted on expanding the eligibility to include all means-tested benefit recipients, bringing in those in receipt of Working Tax Credits and Pension Credit Savings Credit, and making the issue of the rebate more automatic for those on working age benefits who are living in the least energy efficient homes.”
It added that the Department for Business, Energy & Industrial Strategy have not yet published their consultation response but “do plan to proceed on this basis from 2022/23”.
You can read the DWP’s full response on the petition.parliament website here.
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