The State Pension is increasing by 8.5 percent as part of the Government’s commitment to support pensioners in retirement.
- Millions of pensioners set to benefit from 8.5 percent increase to the State Pension
- In one of the largest ever cash increase will mean pensioners will receive an extra £900 a year on the full rate of the new State Pension
- Universal Credit and other working-age benefits to see a 6.7 percent rise, while Government slashes National Insurance to help make work pay
- Comes as the Government has provided support worth an average £3,800 support households between 2022-25
The State Pension is increasing by 8.5 percent as part of the Government’s commitment to support pensioners in retirement.
It comes on the heels of the highest ever cash increase to State Pension in history of 10.1 percent last year, plus a package of support for pensioners this winter worth nearly £5 billion.
Underlining the Government’s commitment to backing Britain’s pensioners, this means pensioners receiving the full new State Pension will get an extra £900 a year. The full yearly basic State Pension will also be £3,700 more than in 2010, while the full rate of the new State Pension will be over £11,500 a year.
This commitment centres around offering dignity and security to those who have worked hard all their lives and deserve support at a stage when they may be unable to grow their income through work. The Triple Locked State Pension remains a cornerstone of this commitment, as it is only right and fair that pensioners incomes are protected.
Pension Credit, a passport benefit to provide additional support for low-income pensioners, will also see a significant rise, with the average award worth over £3,900. The DWP is also increasing Local Housing Allowance rates, putting £800 back in the pockets of over 1.5 million recipients of Universal Credit or Housing Benefit.
This unprecedented support has all been made possible because we are sticking to the plan and our economy has turned a corner– enabling people the opportunity to build a financially secure life for themselves and their family.
Secretary of State for Work and Pensions, Mel Stride MP said:
Thanks to the Triple Lock and our efforts to drive down inflation, we are putting money back in the pockets of pensioners. This is only possible because we have stuck to our plan and our economy has turned a corner.
This will make a meaningful difference to all those who rely on the State Pension and ensure we continue to provide a safety net for those who need it most while making work pay wherever possible.
Minister for Pensions, Paul Maynard MP said:
It’s only right that after a lifetime of work that we protect our pensioners’ incomes.
Our sustained commitment to the Triple Lock demonstrates our determination to continue to combat pensioner poverty, and to ensure that the State Pension will continue to provide the foundation of income in retirement so many need.
To ensure the most vulnerable are also supported, from today those on Universal Credit will see a 6.7 percent increase to ensure a genuine safety net whilst the Government supports their move towards financial independence through work. This 6.7 percent rise extends to other DWP benefits, such as Personal Independence Payment, Disability Living Allowance and Employment and Support Allowance, among others.
In cash terms this means an additional £470 for the 5.5 million households on Universal Credit with over 19 million families across Britain benefiting from uprating, including working parents who can now receive up to £20,800 a year in childcare support.
The Government’s drive to support the most vulnerable has helped reduce absolute poverty by 1.1 million individuals compared to 2010 with over 200,000 pensioners being lifted out of poverty since 2010 after housing costs are taken into account. With inflation more than halved and forecast to reduce further, it is right that we help people back into work and grow the economy, while continuing to provide support to those who need it most.
That is why the Government has provided support worth an average £3,800 for vulnerable households between 2022-25 and is injecting £2.5 billion as part of the Back to Work Plan to help people with disabilities, health conditions, or who are long-term unemployed find and stay in work.
Alongside this, the Government is making work pay for workers and the economy: rewarding work by slashing National Insurance contributions for employed and the self-employed by a third since the autumn and putting £900 back in the pockets of the average hard-working employee. Taken together, this means the equivalent of 200,000 more people in work – filling one in five vacancies and adding 0.4% to GDP and 0.4% to GDP per head, according to the OBR.
