The UK Government has responded to the proposal
The UK Government has dismissed proposals to make the State Pension available from the age of 60 or to increase payments to £586 per week. The response comes after an online petition, which has garnered support from over 18,800 people across the UK, was posted on the Petitions Parliament website.
Denver Johnson, the creator of the petition, suggested increasing payments to match 48 hours each week at the National Living Wage rate of £12.21 per hour. This would provide more than 12 million people currently receiving the State Pension – and those over 60 – with £2344 every four-week payment period, equating to some £30,476 annually.
This proposed increase would also apply to approximately 453,000 retirees whose State Pension has been frozen at the point of emigration due to the absence of a reciprocal agreement with the UK Government in their current country of residence.
In a written response to the petition, the Department for Work and Pensions (DWP) said: “The Government is committed to supporting current and future generations of pensioners and giving them the dignity and security they deserve in retirement.
“Our commitment to the Triple Lock through this Parliament will benefit over 12 million pensioners. From the end of this Parliament, spending on the State Pension as a result of our commitment to protect the Triple Lock is forecast to be around £31billion more a year, compared with 2024/25.”, reports the Daily Record.
An online petition proposes a new ‘universal’ State Pension linked to the National Living Wage. (Image: Getty Images 2020)
The DWP proceeded to outline how its framework of state, private, and workplace pensions forms the foundation for retirement security, emphasising how the New State Pension was launched in 2016 as a “simpler, clearer, sustainable foundation” for private saving, including workplace pensions backed through Automatic Enrolment.
The DWP continued: “The Government also takes seriously the need to ensure future retirees have a decent standard of living. That is why the Government have recently launched the Pensions Commission to ensure our pensions system delivers this in the decades ahead.”
The DWP also highlighted that additional benefits such as Pension Credit can assist pensioner households with low incomes. The means-tested benefit also provides access to extra support including assistance with housing and heating costs, Council Tax and free TV licences for over-75s.
Winter Fuel Payments will also be distributed to pensioners over 66 with an income at, or below £35,00. These will be distributed over November and December, with letters advising of payment amounts going out from this month.
The DWP added: “Pensioners with a long-term health condition or disability may also be eligible for additional-costs disability benefits. In England and Wales these are Attendance Allowance, Disability Living Allowance and Personal Independence Payment.
Responding to the petition’s proposals, the DWP said: “There are no plans to bring State Pension age back down to 60.
“Increases to State Pension age have been in legislation since the Pensions Act 1995 and there have since been a number of legislated increases to State Pension age introduced under successive Governments. As longevity has increased and our society aged, State Pension age rises have maintained fairness between generations and protected the public finances.”
The complete response can be found on the Petitions Parliament website. Should the petition reach 100,000 signatures of support, the Petitions Committee would consider the proposals for parliamentary debate.
The Triple Lock ensures State Pensions rise annually in line with whichever proves highest among average annual earnings growth from May to July, Consumer Price Index inflation rate (CPI) in the year to September, or 2.5 per cent.
The Triple Lock currently appears set to be determined by the earnings growth component of 4.7 per cent (including bonuses). The September CPI figure will be released on October 22 and is predicted to reach 4 per cent. A 4.7 per cent increase on the existing State Pension would result in pensioners receiving the following sums.
Full New State Pension
- Weekly: £241.05 (from £230.25)
- Four-weekly pay period: £964.20
- Annual amount: £12,534
Full Basic State Pension
- Weekly: £184.75 (from £176.45)
- Four-weekly pay period: £739
- Annual amount: £9,607
Chancellor Rachel Reeves is set to confirm the annual uprating for the state Pension and benefits at the Autumn Budget on November 26.
