State Pension future after Prime Minister issued triple lock question
During Prime Minister's Questions on Wednesday, Sir Keir Starmer made it clear there will be "no means-testing of the State Pension under this Labour Government". This confirmation follows recent changes to the Winter Fuel Payment eligibility rules and mounting speculation about the State Pension being next in line for review.
When Labour MP Damien Egan (Bristol North East) raised concerns, asking: "Does the Prime Minister agree that means-testing the State Pension would do severe harm? And will he confirm that this Government will always protect the State Pension and the Triple Lock? " Sir Keir responded: "Let me be absolutely clear, there will be no means-testing of the State Pension under this Labour Government."
Emphasising his government's stance, the Prime Minister added: "We're committed both to the Triple Lock and to the principle that people should receive pension based on their contribution, regardless of their wealth."
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Addressing those who argue for means-testing, he said: "When people like the Leader of Opposition say that they want means-testing, that means a cut, the difference is they cut pensions, we are increasing them."
Latest statistics from the Department for Work and Pensions (DWP) show a total of 12.9 million individuals now receiving the State Pension, with over 1.1 million claimants in Scotland alone. Among these, approximately 4.1 million are beneficiaries of the New State Pension (introduced post-April 2016), while the remaining 8.8 million are recipients of the Basic (or Old) State Pension (established pre-April 2016), reports the Daily Record.
The New and Basic State Pensions are due to increase by 4.1% on April 7, according to the earnings growth measure of the Triple Lock. However, additional elements, along with working age and disability benefits, will see a rise of 1.7% based on the September Consumer Price Index (CPI) inflation rate.
The Department for Work and Pensions (DWP) has recently outlined the proposed new payment rates for the 2025/26 financial year. Those receiving the full New State Pension will see their weekly payments increase by £9.05, from £221.20 to £230.25.
Given that payments are typically made every four weeks, this equates to a total of £921.
This increase will result in annual payments rising by £473.60, from £11,502 to £11,973 over the 2025/26 financial year. However, it's crucial to note that not all of the 4.1 million people on the New State Pension receive the full amount as it is tied to National Insurance Contributions.
Those on the full Basic State Pension will see their weekly payments increase by £6.95, from £169.50 to £176.45, or £705.80 every four-week payment period. Annual payments will increase by £361.40, from £8,814 to £9,175.40 over the 2025/26 financial year.