The Chancellor’s recent statements around the State Pension and a Triple Lock increase of £473 for all pensioners, which have been reported and replicated by several media outlets, are unfortunately highly misleading and also upsetting for the older people to which they refer.
Chancellor's State Pension Claims Under Fire:
£473 Rise Misleading for Most Retired Brits
The increase of £473, based on a 4.1% rise, applies only to those on the New State Pension (NSP), and specifically to those receiving a full state pension based on their National Insurance Contributions (NICs). We find it necessary to bust wide open that statement, as not every pensioner will receive that amount and here is why.
Only 20% of the total number of pensioners are on the NSP – those who retired from 2016 onward. To be in receipt of the £473 increase, an individual must be claiming a full state pension based on their National Insurance Contributions (NICs).
Likewise, those on the Basic State Pension (BSP) – those retired prior to 2016 with an annual increase for those on a full pension being £361 over the year. In April 2025 the NSP will be worth £230.30 a week, or £11,975 a year. For those on the BSP it will be worth £176.45 a week, or £9,175 a year.
The UK has one of the most inadequate pensions in the industrial world. The majority of pensioners (mainly women) do not receive a full state pension due to societal and lifestyle restrictions. The NPC policy is for all pensioners to receive a pension based on 70% of the National Living Wage (outside of London). If that was applied in April 2025, all pensioners would receive £299.15 a week. If it were to be paid at the rate of the Real Living Wage, it would be £308.70 a week.
The Chancellor's second claim that the triple lock rise will offset the loss of the Winter Fuel Payment for pensioners not on Pension Credit is another fallacy. The Pension Credit threshold is set low because the state pension itself is insufficient. Many pensioners who fall just above this threshold still face significant financial hardship. The loss of the Winter Fuel Payment has far-reaching consequences beyond just heating costs. For many, it forces difficult decisions—whether to heat their homes or buy enough food. Others are forced to choose between paying for essential care, visiting family and friends, or attending social activities that support their physical, mental, and emotional well-being.
Energy has already risen by 10% and we expect a further 3% rise in January 2025. In April next year all household bills will traditionally increase, rent, council tax, water, broadband and who knows what the interest rate and energy cap will be then. So, by the time the triple lock kicks in, not only will it not compensate for the loss of the winter fuel payment, we believe it will be totally devalued – or worse – in deficit.
Marie Curie has recently released their report into poverty*, highlighting the many thousands who have died in poverty, including 110,000 people over 65. In the 21st century, in the 6th richest economy in the world, poverty should not be a feature of our lives.
We encourage the media to uphold their responsibility to fact-check and perform due diligence when reporting on issues affecting older people. Accurate, honest reporting is essential to avoid spreading misleading claims and to ensure the public is fully informed about the realities faced by pensioners.
Furthermore, we urge the government to reinstate the Winter Fuel Payment to all older people. The drive to balance the books on the backs of older people and others struggling to deal with energy and food prices is, at best, unworthy. We call on them to find their moral compass and implement policies that eradicate poverty rather than create it. We also ask that the government stop misleading the public by making ‘blanket’ statements about older people. It is time to show respect for the dignity and independence of older people and to ensure their financial security is taken seriously – not just for today, but for the pensioners of the future.
*Dying in poverty - Exploring poverty at the end of life in the UK - www.mariecurie.org.uk/globalassets/media/documents/policy/dying-in-poverty/h420-dying-in-poverty-5th-pp.pdf
ENDS