The Department for Work and Pensions (DWP) has rejected proposals in an online petition calling for the State Pension to increase to £549 for every person over the age of 60, including Brits living abroad in retirement. The proposals put forward by Denver Johnson have received more than 19,200 signatures of support.
In a written response on Thursday, the DWP said that the UK Government “has no plans to make State Pension available from the age of 60 or to increase State Pension to equal 48 hours of work a week at the National Living Wage”. But all is not lost for the campaigner and supporters of the proposals because if the petition reaches 100,000 signatures, the Petitions Committee would consider it for debate in Parliament.
The campaigner proposes increasing the State Pension to equal 48 hours each week at the National Living Wage rate of £11.44 per hour. Such an uplift would provide 12.9 million people currently on the State Pension – and those over 60 – with £28,554.24 each year.
This uplift would also be applied to some 453,000 retirees whose State Pension has been frozen at the point of emigration because the country they now live in does not have a reciprocal agreement with the UK Government.
The DWP response said that the UK Government is “committed to supporting current and future generations of pensioners and giving them the dignity and security they deserve in retirement” and highlighted Labour’s commitment to the Triple Lock for the duration of this Parliament.
The DWP continued: “The State Pension and the National Living Wage have different purposes, and a direct comparison cannot be drawn. The National Living Wage is designed to protect low-income workers and provide an incentive to work.
“It is also worth noting that while State Pension is an entitlement based on a person’s National Insurance record, it is legally a benefit. From the time of the 1946 National Insurance Act, which applied from the inception of the National Insurance scheme, retirement pension (latterly also known as State Pension), has always been classified in law as a ‘benefit’.”
DWP also explained how the New State Pension was introduced in 2016 to be a “simpler, clearer, sustainable foundation for private saving, including workplace pensions supported through Automatic Enrolment”.
DWP added: “The introduction of Automatic Enrolment has both increased and equalised workplace pension participation rates between eligible men and women in the private sector. Together, the New State Pension and Automatic Enrolment provide a robust system for retirement provision for decades to come, with those on low incomes supported by Pension Credit which continues to provide a safety net.”
The DWP also said there are no plans to bring the State Pension age back down to 60, explaining how it is a pay-as-you-go system funded by current taxpayers.
This means that the “pensions paid out today are financed from National Insurance and other tax revenues collected today”.
DWP explained how there were 280 pensioners for every 1000 people of working age as of 2020, but this will increase rapidly from the 2030s and will reach levels never seen before by 2070, where the ratio is projected to be 393 pensioners per 1,000 people of working age.
In 2024/2025, it is forecast that the total spend on State Pension will be £138 billion, or 5.2 per cent of GDP.
The latest projections are that by 2073 to 2074, as a result of increasing life expectancy and a growing pensioner population, spending on State Pension is projected to be 7.9 per cent of GDP.
DWP added: “For people who have not reached State Pension age the Government is committed to providing a financial safety net for those who need it. Support is available through our benefits system for those who are unable to work or are on a low income but are not eligible for pensioner benefits because of their age.”
State Pension payments 2025/26
The DWP will publish the full list of State Pension and benefit uprated payments shortly, so far they have only confirmed the New and Basic State Pension rates, not additional elements (which are rising by 1.7%).
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)
Future State Pension increases
The Labour Government has pledged to honour the Triple Lock or the next five years and the latest predictions show the following projected annual increases:
- 2025/26 – 4.1% confirmed, the forecast was 4%
- 2026/27 – 2.5%
- 2027/28 – 2.5%
- 2028/29 – 2.5%
- 2029/30 – 2.5%