The UK government is expected to increase the state pension by more than £400 a year, following criticism of Chancellor Rachel Reeves’ decision to make the winter fuel surcharge means-tested.
Calculations from the Ministry of Finance indicate that the full state pension could rise in line with average earnings as a result of the introduction in April of the triple lock, which ensures that pensions rise at the highest rate of September inflation, wage growth or 2.5%.
The expected changes could see the full state pension reach around £12,000 in the 2025/26 tax year, after rising by £900 in 2023. Pensioners who started claiming their pension before 2016 could be eligible for the benefit under the old system secondary state pension. , are expected to see an annual increase of £300, taking their pensions to £9,000 by 2025/2026.
The expected pension increase follows opposition to Labour’s policy to limit the winter fuel surcharge to pensioners receiving pension credits. Critics argue that this measure effectively uses retirees as a “cash cow.”
Mel Stride, Shadow Work and Pensions Secretary and Conservative leadership candidate, condemned the policy, saying: “Labour repeatedly misled voters at the election by saying they had no plans to cut winter fuel payments, and also failed to deliver on the promise of the Conservatives. to protect the triple lock. This wasn’t an either-or. Now they are trying to use the triple lock as an excuse to go back on their word.”
Dame Harriett Baldwin, a Tory MP and former chairman of the Treasury Select Committee, added: “This will help a vulnerable 90-year-old with an income of £13,000, who faces a 10% increase in his heating bills this winter, not. Labor has made a chilling political choice to take over those with the weakest shoulders to pay their union paymasters.”
With inflation currently at 2%, it is expected that the state pension will be increased in line with average income. The final figures will be announced next week. The decision on the exact pension increase will be made by Liz Kendall, the Pensions Secretary, ahead of the October Budget.
The triple lock policy, aimed at protecting pensioners’ incomes from rising pension prices, will remain in place until the end of the current parliament, according to the Chancellor. The Treasury reaffirmed its commitment to the policy, saying: “We are committed to protecting the triple lock that will boost the incomes of more than 12 million pensioners by hundreds of pounds next year.”
The announcement comes as retirees face rising costs of living, especially in energy, with many expressing concerns about the affordability of heating this winter. As the government defines its approach to pension and welfare policy, the debate over the best ways to support the country’s retirees in an economically challenging environment continues.