‘Many losing out on £50 a week under the two-tier state pension’

CAMPAIGNERS have called for a review of the two-tier state pension system that means a “staggering” £50 difference in payments a week.

The 8.5% triple lock increase that comes into force this month means a rise of £900 a year for some retirees.

But Silver Voices warned the difference between the basic old state pension and the new version paid to people who retired after April 2016 is growing.

Director Dennis Reed, right, said it is time for ministers to reassess the system.

He said: “For the large majority of state pensioners, the welcome triple lock increase will still result in state pensions well under £200 per week.

“If that is all the income you have, it is almost impossible to eke out a healthy existence in today’s inflationary world. You either shut off your heating or go without healthy foods.” Mr Reed added: “And millions are angry the scandalous gap between the old and new state pensions is ignored by most commentators.

“The oft-quoted top rate of the new state pension is a largely mythical figure, received by only a tiny minority of pensioners.

Each time it is quoted, millions of senior citizens grind their teeth in frustration and disbelief.”

The old basic state pension is made up of national insurance contributions and an earnings element. A simplified system came in eight years ago.

The triple lock means the full basic state pension will rise by £13.30 per week to £169.50 while the full new state pension is up £17.35 to £221.20.

The Treasury said: “Pensioners do not pay any income tax if their sole income is from the full new state pension, and we are standing by our commitment to the triple lock by raising the basic state pension to almost £170 a week from this month, after the largest ever cash increase last year.”