DWP update on means-tested state pension as government minister quizzed
The recent alterations to the Winter Fuel Payment eligibility criteria, which now require individuals to be receiving a means-tested benefit, have sparked concerns hat the state pension may soon follow suit. Currently, entitlement for the state pension is based on National Insurance contribution records, with the full new state pension paying out £221.20 weekly.
Typically, 35 years of contributions are necessary for this amount, although there are exceptions. Sandra Wrench, a Bedford resident and former DWP staff member, expressed her concern regarding the future approach to the pension in a letter forwarded by her local MP, Mohammed Yasin.
Ms Wrench highlighted the considerable challenges that would arise from implementing means-testing for a benefit that becomes claimable at the age of 66. Addressing the issue, Labour's pensions minister, Emma Reynolds, has reassured that there are "no plans" to adjust current policies.
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In her reply, Ms Reynolds clarified: "I am sorry that speculation and rumour has caused Mrs Wrench undue concern. Ensuring a better deal for current and future pensioners is a priority for this Government."
She stated: "I can confirm that the state pension is not subject to a means-test, and we have no plans to change this." Last week's Autumn Budget saw Chancellor Rachel Reeves reiterate Labour's commitment to uphold the triple lock, guaranteeing an increase to state pension payments come next April.
The new state pension will see a 4.1 percent increase, with the full amount rising from £221.20 per week to £230.30, resulting in an annual increase of £473.60. The full basic state pension will also increase from its current £169.50 per week to £176.45, delivering an annual boost of £361.40.
However, changes to the Winter Fuel Payment mean that millions of pensioners will no longer be eligible for this support, which is worth between £200 and £300. Previously, this payment was universally available to those of state pension age, but now it requires a claim for a means-tested benefit such as Pension Credit.
It's worth noting that many people are missing out on Pension Credit, a benefit designed to top-up low incomes up to £218.15 a week for single individuals or £332.95 for couples. You may still be eligible for the support even if your income exceeds these levels, as additional payments are available depending on individual circumstances, such as caring for another adult.