Petition Increase State Pensions to £416.80 per week & lower Retirement Age to 60 for All

There has been no Policy change since this topic was debated on 12 December 2022 (https://petition.parliament.uk/petitions/617603).

The Government is committed to a decent State Pension as the foundation of support for people in retirement.

We are forecast to spend around £134 billion in 2022/23 on benefits for pensioners, including around £110 billion on the State Pension. This is forecast to increase in 2023/24. This proposal would add significant costs and make the system unsustainable, creating additional burdens on the working age population.

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 announced plans to apply the Triple Lock in 2023/24 and State Pensions will increase by 10.1% from April this year. The full weekly basic State Pension will increase from £141.85 to £156.20 (£748.70 higher per year), and the full weekly rate of the new State Pension will increase from £185.15 to £203.85 (£975.70 higher per year).

We also provide additional support to older people, which includes the provision of free bus passes, free prescriptions, Winter Fuel Payments and Cold Weather Payments. 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.

The Government has also acted to protect pensioners against the current Cost of Living situation. This includes a £650 Cost of Living Payment to more than 8 million low-income households on qualifying means-tested benefits, including Pension Credit, with separate one-off payments of £300 to pensioner households (through and as an addition to the Winter Fuel Payment) and £150 to individuals receiving extra costs disability benefits.

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.

Pension Credit is a means tested benefit and provides a top up for people of State Pension age to a weekly minimum amount, (currently £182.60 for single people and £278.70 for couples, increasing, subject to Parliamentary approval, to £201.05 and £306.85 respectively, from April 2023). These amounts may be higher for those with caring responsibilities, a severe disability or certain housing costs. This approach ensures that spending is targeted at those most in need. Information about Pension Credit is available from the Government website – www.gov.uk - by entering ‘Pension Credit’ into the search bar.

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.

We have no plans to reverse changes to SPa. Reforms have focused on maintaining the right balance between the 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. On average, people are living longer, and increases to SPa in line with life expectancy has helped to maintain the cost and sustainability of the State Pension in the long term.

The Government have previously estimated that had any increases in SPa not been put in place, the total additional cost to taxpayers would have been around £215 billion for the period 2010/11 to 2025/26, in 2018/19 prices. This figure takes into account State Pension, other pensioner benefits, and savings made on working age benefits. The 2019 report that details these costs can be found here:

https://www.gov.uk/government/publications/analysis-relating-to-state-pension-age-changes-from-the-1995-and-2011-pensions-acts/analysis-relating-to-state-pension-age-changes-from-the-1995-and-2011-pensions-acts

Finally, this Government is committed to providing a financial safety net for those who need it. 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.

Department for Work and Pensions