‘We back Britain’s pensioners. It’s as simple as that...’
Minister says £900 rise shows Tories care about retired
MILLIONS of elderly people will get a pension boost of up to £900 as new triple lock changes kick in today – with a senior Tory Minister declaring: “We back Britain’s pensioners”.
The increase also marks another landmark in the victorious Daily Express crusade to protect the vital guarantee.
Overall, the new state pension rate will exceed £11,500 a year thanks to the changes introduced in Chancellor Jeremy Hunt’s budget last month.
Work and Pensions Secretary Mel Stride said the changes, which take effect from today, will mean Britain’s pensioners will continue to be supported. He said: “We back Britain’s pensioners. It’s as simple as that.”
He also pointed out that the Government has dished out £5billion of support to help pensioners through the winter.
The triple lock on state pensions ensures payments rise in line with the highest out of inflation, average wage growth or 2.5% each April.
This year the full state pension will rise by £17.35 per week from £203.85 to £221.20, in line with earnings – an increase of 8.5%.
Rishi Sunak has insisted pensioners will get the triple lock for the rest of the decade under Tory rule while Sir Keir Starmer has refused to confirm if it will continue under Labour. Mr Stride said the Conservatives’ backing of pensioners draws a stark contrast with Labour.
He said: “From our triple lock guarantee, introduced of course by a Conservative Government, to the billions of pounds of pensioner cost-ofliving payments, we have ensured that this country’s pensioners have been financially supported as our plan for the economy has helped the country turn a corner.
“Under this Government’s watch the state pension will continue to be a foundation for income in retirement for generations to come so pensioners can retire with the security and dignity they deserve.”
Despite the boost, campaigners have called for a review of the two-tier state pension system which could result in a £50 difference in payments a week.
The Silver Voices group warned the difference between the basic old state pension and the new version paid to people who retired after April 2016 is growing.
There have also been warnings after analysis showed pensioners will be just £20 better off this year after their triple lock increase was all but wiped out in the Budget.
The Resolution Foundation think tank said the Chancellor’s six-year freeze in income tax thresholds will cost retirees dearly.
It said an 8.5% rise in the state pension will leave OAPs £190 better off in the next tax year after adjusting for higher prices.
But this will be off-set by the freeze in income tax thresholds, which will cost pensioners £170 – meaning they stand to gain just £20 overall.
By contrast the think tank has said a parent earning £60,000 was in line
for a net tax cut of £900 because of reductions in National Insurance.
The organisation said: “A basic rate tax-paying pensioner will essentially see their above-inflation state pension rise wiped by this April’s personal allowance freeze.”
Steve Webb, a partner at pensions consultants LCP, said the analysis is a reminder that pensioners did not get a “big giveaway” in the Budget.
The Treasury said the triple lock and new state pension meant people are on average £1,000 better off than if the pension had just risen with earnings. It added: “Pensioners do not pay income tax if their sole income is from the full new state pension and we are standing by our commitment to maintain the triple lock by raising the basic state pension to almost £170 a week.”
Last night Pensions Minister Paul Maynard hit back at claims that stealth taxes will wipe out more than three quarters of today’s increase to the state pension.
According to the Liberal Democrats, a typical basic rate tax-paying pensioner will face a £530 a year hit due to the Government’s freezing of income tax thresholds, meaning 77% of the rise in the pension is being swallowed up in stealth taxes.
But Mr Maynard said: “It was a Conservative Government that introduced the pensioner triple lock, delivering brighter future for pensioners and lifting 200,000 more pensioners out of poverty since 2010.” He insisted: “The Conservatives are the only party that will back British pensioners.”