State pension age won’t reduce and sum won’t rise to £416, says DWP

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Many Britons are dissatisfied with the state pension as it currently functions, and have petitioned for change. At present, the state pension age is 66 and rising, having been 60 for women and 65 for men in the past before age equalisation.

Similarly, the full new state pension currently provides a payout of £185.15 per week, and £141.85 weekly for basic state pensioners.

This typically hinges on National Insurance contributions, but some may get less than the full new state pension if they were contracted out before April 6, 2016.

However, some would like to see the state pension sum increased to provide more support to older Britons, while lowering the state pension age to 60 for all.

Over 34,000 people signed a Parliament petition calling for an increase to the state pension to £416.80 per week, and a lower retirement age.

The petition asserted: “British State Pensions are far too low. The Government must increase the basic state pension to £21,673.60 a year (£416.80 per week) and extend this to everyone aged 60 or over. 

“This should lift thousands out of poverty, give our elderly folk the power to survive and help grow the real economy, bottom up.

“A state pension age of 60 for all, reflects current trends in life expectancy which are downward and that health deteriorates long before people are able to claim state pension currently.”

The petition added a protection of pensions would defend the future and “invest directly into the real economy”.

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However, to the disappointment of the signatories, the petition has been roundly rejected by the Department for Work and Pensions (DWP).

The Government recently delivered their verdict, stating there are “no plans” to carry out the requests made in the petition.

The Department did acknowledge it is committed to a “decent state pension as the foundation of support for people in retirement”.

But it went on to explain such a proposal would “make the system unsustainable” and place additional burdens on Britons who are currently of working age.

Instead, the Government has looked towards the triple lock, which is set to deliver a 10.1 percent boost from April this year – the largest of its kind.

This will take the full basic state pension to £156.20 per week, and the full new state pension to £203.85 weekly.

The Government also cited further support available to pensioners, including a cost of living payment, free bus passes, free prescriptions, and winter payments. 

Low-income pensioners may also find they are eligible for Pension Credit which may provide a valuable boost.

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Changes to the state pension age will also not be reversed, as the Government asserts “on average, people are living longer”.

With life expectancy taken into account, the Department argued increases have helped to maintain the cost and sustainability of the state pension.

When it comes to the state pension age, it appears the only direction is up, as a review is currently pending on the matter.

While the DWP told “no decision has yet been made” on the state pension age, planned increases to 67 and 68 have already been laid out in legislation.

Furthermore, recent reports suggest changes to the state pension age could also be accelerated, with a rise to 68 potentially happening in the “late 2030s”.

The Government has until May 7, 2023, by law, to give feedback on the matter.

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