An online petition calling for a minimum weekly State Pension payment of £380 for all men and women over the age of 60 was recently rejected by the Department for Work and Pensions (DWP). The petition also urged the UK Government to lower the age of retirement back to 60.
However, the DWP recently responded to the petition, created by Michael Thompson, saying that the UK Government “has no plans to increase State Pension to £380 per week or reduce State Pension age to 60 ” but that hasn’t put people off showing their support for the suggestion. The petition has now received more than 105,300 signatures of support, which means the issue could be debated in Parliament.
The petitions-parliament website states: “Parliament considers all petitions that get more than 100,000 signatures for a debate.” The website also states that the petition has been waiting 41 days for a debate date.
The petition argues that increasing the weekly State Pension payment rate for everyone over 60 would result in an annual income of £19,600, which “should lift thousands out of poverty, and give our elderly folk more spending power”.
The DWP response also added that the UK Government has “committed to implementing the Triple Lock in the usual way for the remainder of the Parliament” and that State Pension is “likely to increase substantially in 2023/24”.
The Triple Lock rule ensures that State Pension increases each year in line with whichever is highest of inflation as measured by the Consumer Price Index (CPI) for September, average earnings, or 2.5%.
However, Chancellor Jeremy Hunt, Prime Minister Rishi Sunak and the new Secretary of State for work and Pensions, Mel Stride, have all declined to confirm whether State Pension and benefits will increase in line with the September inflation rate of 10.1%.
A decision is not expected to be announced until the Autumn Statement on November 17.
The official response to the petition also highlighted how the UK Government spends over £134 billion each year on benefits for pensioners, including more than £110 billion on the State Pension alone.
It also outlined additional support available to people over State Pension age including Winter Fuel Payment, Pension Credit and Cold Weather Payments - these are being replaced by a new £50 one-off payment for people in Scotland from February 2023.
DWP said: “The Government is committed to a decent State Pension as the foundation of support for people in retirement.
“The Government is committed to alleviating pensioner poverty. There are 400,000 fewer pensioners in absolute poverty (both before and after housing costs) than in 2009/10.
“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.”
DWP said the proposal in the petition would add “significant costs” and make the system unsustainable, creating “additional burdens on the working age population”.
The Department added: "Since 2010, the full yearly amount of the basic State Pension has risen by over £2,300, in cash terms. That's £720 more than if it had been uprated by prices, and £570 more than if it had been uprated by earnings. The Government has committed to implementing the Triple Lock in the usual way for the remainder of the Parliament."
The response encourages older people to check online eligibility for unclaimed benefits, such as Pension Credit - you can read more about means-tested benefit here.
It also gave an overview of the cost of living support available to older people across the country who may already be getting Pension Credit or who qualify for the Winter Fuel Payment, which will be boosted by an extra £300 to help with soaring energy bills this winter. Some 8 million low-income households will receive up to £600 in November or December - read more about eligibility here.
DWP also explained about the £400 energy bill reduction for all domestic electricity customers and how the new £2,500 Energy Price Guarantee will replace Ofgem’s price cap until the end of March 2023.
State Pension age
The DWP response to this element of the petition 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.”
It explained: “We have no plans to reverse changes to SPa. Our reforms have focused on maintaining the right balance between affordability, sustainability of the State Pension, and fairness between generations.
“The latest Office for National Statistics data shows that the number of people over SPa compared to the number of people of working age is expected to increase.”
It went on to say that the State Pension is funded through the National Insurance and tax contributions of the current working-age population.
“Reducing the SPa to 60 would therefore increase the tax burden of the current working-age population,” DWP explained.
The DWP concluded its response by saying that the UK Government is “committed to providing a financial safety net for those who need it, including when they near or reach retirement”.
It added: “Support is available through our benefit system to those who are unable to work or are on a low income but are not eligible for pensioner benefits because of their age.”
You can read the full response online at the petitions-parliament website here.
Despite the rejection of the proposals in the petition, if it reaches 100,000 signatures - it is currently less than 2,000 away from the threshold - it will be considered for debate in Parliament.
The petition is open until December 20, 2022.
To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
