More than 10 million older people are missing out on Winter Fuel Payments this year because they are not in receipt of a means-tested benefit such as Pension Credit. The Labour Government insisted the policy change was necessary to plug a £22 billion black hole in the public purse left by the Conservative administration.
On Thursday, Kemi Badenoch told LBC that the Tories will consider means-testing the triple Lock, in what would be a major policy shift for the party. However, any changes to the current uprating policy for the State Pension look unlikely, according to a former Department for Work and Pensions (DWP) employee with over 42 years experience dealing with State Pensions and benefits.
Sandra Wrench from Bedford wrote a nine-page letter to the DWP last year, submitted through her local MP, Mohammad Yasin, shortly after Rachel Reeves announced the policy change to the Winter Fuel Payment.
Mrs Wrench expressed her concern over the prospect of means-testing the State Pension and explained why the UK Government would face “great difficulty” implementing such a massive policy change due to the complexity of the contributory benefit.
Responding to the ex-DWP employee’s concerns, the then Pensions Minister Emma Reynolds confirmed that the UK Government “have no plans” to means-test the State Pension.
In a letter to Mohammad Yasin, Ms Reynolds wrote: “I am sorry that speculation and rumour has caused Mrs Wrench undue concern. Ensuring a better deal for current and future pensioners is a priority for this Government.
“I can confirm that the State Pension is not subject to a means-test, and we have no plans to change this.”
The 72-year-old wrote the letter with the aim of getting a response that would give older people peace of mind about their State Pension, which for some, is their only source of income.
Mrs Wrench told the Daily Record: “You need some kind of financial security in later life, so having a State Pension which is not means-tested gives people that security, which is why I feel that it is such an important issue.
“It is easy for some people to say that you can claim a means-tested benefit, such as Pension Credit, but as you get older you may not have the mental energy levels to cope with completing a 23-page form, including listing all your assets, and notifying DWP of any change.”
The UK Government has confirmed that State Pension payments will rise by the earnings growth measure of the Triple Lock policy. This means millions of older people claiming the New and Basic State Pension will see payments rise by 4.1 per cent from April 7.
The Pension Credit earnings threshold will also rise by 4.1 per cent from the current £11,400 to £11,850 in April. This increase takes into account the State Pension uprating which could see those on the full, New State Pension receive an uplift of up to £470 over the 2025/26 financial year.
State Pension payments 2025/26
It’s important to be aware that additional State Pension elements will increase by the September CPI figure of 1.7 per cent.
Full New State Pension
- Weekly payment: £230.25 (from £221..20)
- Four-weekly payment: £921 (from £884.80)
- Annual amount: £11,973 (from £11,502)
Full Basic State Pension
- Weekly payment: £176.45 (from £169.50)
- Four-weekly payment: £705.80 (from £678)
- Annual amount: £9,175 (from £8,814)