DWP to Increase Pension by £400 for Pensioners
Pensioners are likely to receive an additional £400 annually from the Department for Work and Pensions (DWP). The increase is a result of the Government’s commitment, as reported recently. Here are the key points to note:
• The full state pension could see a rise of over £400 per year.
• This is due to the April triple lock adjustments.
• By 2025/26, the full state pension could reach around £12,000.
• Retirees pre-2016 who are eligible for the secondary state pension may receive a £300 increase per year.
• The new state pension system, introduced in 2016, aims to provide a stable base pension for individuals to supplement with private savings.
Chancellor Rachel Reeves has reiterated the Government’s support for the triple lock system until the end of the current term. On a related note, the decision to discontinue the winter fuel allowance for most households has sparked criticism. Analysis from last week revealed that only about half of those receiving the new state pension in the previous year were receiving the full weekly amount, with approximately 150,000 individuals receiving less than £100 per week.
Royal London, analyzing data from the Department for Work and Pensions from spring 2023, found that out of 3,407,567 individuals receiving the new pension, 1,737,342 received the full weekly amount. The current full state pension for 2024/25 stands at £221.20 per week, up from £203.85 in the previous year.
The final decision on the pension increase will be made by Secretary of State Liz Kendall prior to the October budget announcement. For further comments on this matter, the Treasury has been approached. Stay tuned for more updates on this developing story.