- Millions of pensioners set to benefit from 8.5 percent
increase to the State Pension today
- 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 today 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 from today. 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.
Minister for Employment, Jo Churchill MP, said:
We are continuing to protect those in need through boosting
benefits by 6.7% and providing the largest cost of living support
package in Europe.
The welfare system will always be there for people who need it,
but work is the best way to secure long-term financial security
and our £2.5 billion Back to Work Plan will help even more people
secure employment.
At the same time we are making work pay through generous tax cuts
and the rise in the National Living Wage.
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.
Additional Information
The new rates will apply from 8 April 2024. Please see here for a
full list of rising benefits: Benefit and pension rates
2024 to 2025
