Age UK reports that three out of four, or just under 10 million pensioners, will receive less than the promised Department for Work and Pensions (DWP) Triple Lock hike of over £400.
Three in four State Pensioners are set to get smaller increases in April. Age UK reports that three out of four, or just under 10 million pensioners, will receive less than the promised Department for Work and Pensions (DWP) Triple Lock hike of over £400.
During the Autumn Budget the Government confirmed that the State Pension will rise by 4.1% on 6 April 2025, under what’s known as the ‘triple lock’ guarantee. The Guarantee Element of Pension Credit – a top-up benefit for low-income pensioners – will also increase by 4.1% from April 2025.
Martin Lewis warned: The full state pension rise is for those who get the full state pension. There are up to 800,000 of the poorest pensioners who get less than the full state pension (£11,400 a year) who aren’t claiming Pension Credit and will miss out on the Winter Fuel Payment even though they should get it.
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“They are very hard to reach and will be under huge financial pressure. These are therefore people the Government said should be helped but due to difficulties in the system won’t be. These are the people I’m most worried about, some of whom may end up choosing between heating and eating.
“NB: Only one in four pensioners get the ‘new’ state pension (hat tip to @paullewismoney). The ‘old’ state pension also has the triple lock, but as it is on a lower base won’t rise as much.”
Caroline Abrahams CBE, charity director at Age UK said: “Many people believe that all pensioners receive the same amount of state pension, but that’s not the case.
“Only pensioners in receipt of the full rate of the new state pension will receive the maximum increase in their state pension this year.” Mr Lewis said: “Good news. The full ‘new’ state pension is to rise £460 a year next year due to the triple lock. That is a real rise of about £200 above inflation. Yet there are two things I’d point out in the context of the debate about the Winter Fuel Payment.
1. The rise starts next April. This winter most pensioners are facing (looking at energy bills alone) a typical £500 higher cost compared to last (energy bills are £100ish cheaper, but no £300 cost of living payment, no up to £300 Winter Fuel Payment).”