‘Rubbing our noses in it!’ State pension rise will be swallowed up, retiree fears - ‘Doesn’t go anywhere’
GBNEWS
The state pension received a 4.1 per cent increase from April this year under the triple lock guarantee
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Nearly half a million pensioners aged 80 and over receive a weekly boost to their state pension, but the amount has remained unchanged for over five decades.
Those who were born in 1944 or earlier and receive the basic state pension are entitled to an additional 25p per week.
This supplement was introduced in 1971 and has never been uprated by successive Governments. The modest increase amounts to just £13 per year for elderly recipients.
Labour MP Jonathan Davies recently questioned the Government in Parliament about this long-standing addition, asking about its administrative costs and whether these exceed the amount paid to claimants.
This supplement was introduced in 1971 and has never been uprated by successive Governments
GETTYPensions Minister Torsten Bell responded that the 25p age addition is "simple to administer" with negligible administration costs as payments are made automatically as part of ongoing state pension entitlements.
However, the DWP does incur some expenses in notifying pensioners approaching their 80th birthday about the increase. In 2024, some 474,239 letters were issued at a cost of £278,030 for printing and postage.
Bell confirmed that the total annual cost of the age addition for eligible pensioners over 80 is estimated to be £50.8million for 2024/2025. He stated: "Administrative costs therefore, do not exceed the total amount paid."
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When the 25p addition was first introduced in 1971, the state pension was just £6 a week
GETTYWhen the 25p addition was first introduced in 1971, the state pension was just £6 a week, making this supplement a significant four per cent uplift to recipients' income. Today, that same amount represents a far less impactful boost.
A Parliament research briefing from 2013 explained the original rationale behind the policy, noting it was introduced "in recognition of 'the special claims of very elderly people who on the whole need help rather more than others'".
Successive Governments have opted not to increase this amount, instead arguing that "greater priority should be given to protecting the level of the basic benefits" or choosing to target additional resources at older pensioners through other means.
Pensioners can check their projected state pension amount using the forecast tool available on the Government's website
PAThe state pension received a 4.1 per cent increase from April this year under the triple lock guarantee. This raised the full basic state pension from £169.50 to £176.45 per week.
To qualify for the full basic state pension, individuals generally need 30 years of National Insurance contributions. The full new state pension also increased, rising from £221.20 to £230.25 per week since April.
Pensioners can check their projected state pension amount using the forecast tool available on the Government's website.
The 25p age addition, like the £10 Christmas Bonus, has remained unchanged since its introduction in 1971.