DWP update due on plan to increase State Pension payments | Personal Finance | Finance
A petition, which has now amassed over 14,900 signatures, is calling on the Government to significantly increase the weekly State Pension to £549 for everyone aged over 60. The campaign, initiated by Denver Johnson, has crossed the 10,000-signature threshold, obligating the Department for Work and Pensions (DWP) to issue a formal response.
The proposed hike would align the State Pension with the earnings of a 48-hour work week at the current National Living Wage rate of £11.44 per hour, equating to an annual sum of £28,554.24. This change would affect the 12.9 million individuals currently on the State Pension, as well as anyone aged over 60.
Additionally, around 453,000 retirees living abroad with frozen pensions due to the absence of reciprocal agreements would benefit from this increase. The petition, available on the petitions-parliament website, reads: “We want the Government to make the State Pension available from the age of 60 and increase this to equal 48 hours a week at the National Living Wage.
“Hence from April 2024, a universal State Pension should be £549.12 per week or about £28,554.24 per year as a right to all including expatriates, age 60 and above.”
The petitioners argue that the Government’s current policy treats the State Pension as a benefit and is pushing up the age of eligibility.
They are also seeking reforms for earlier access to the pension, starting at age 60, as reported by the Daily Record.
The petition, which would be considered for debate in Parliament if it reaches 100,000 signatures, can be read in full here. The New and Basic State Pensions are set to rise by 4.1 per cent in April under the earnings growth measure of the Triple Lock.
However, additional elements, along with working age and disability benefits, will increase by 1.7 per cent under the September Consumer Price Index (CPI) inflation rate. The DWP recently outlined the proposed new payment rates for the 2025/26 financial year.
Those on the full New State Pension will see a weekly increase of £9.05, from £221.20 to £230.25, equating to £921 every four weeks. This uplift will result in an annual increase of £473.60, from £11,502 to £11,973 over the 2025/26 financial year.
However, not all of the 4.1m people on the New State Pension receive the full amount as it is linked to National Insurance Contributions. Those on the full Basic State Pension will see a weekly increase of £6.95, from £169.50 to £176.45, or £705.80 every four-week payment period.
Annual payments will rise by £361.40, from £8,814 to £9,175.40 over the 2025/26 financial year. To forecast your future State Pension payments, you can use the pension tool on GOV. UK.
