Asked by: Lord Davies of Brixton (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, in the light of the publication of the State Pension uprating analysis on 29 September, what proportion of average earnings they estimate the full rate of the new state pension will represent following the uprating due in April 2029; and what assumptions regarding average earnings growth and earnings levels underpin that estimate.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The proportion of average earnings the new State Pension will reach in April 2029 will depend on the levels of inflation and wage growth in the coming years.
Asked by: Lord Davies of Brixton (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, in the light of the publication of the State Pension uprating analysis on 29 September, what plans they have to provide a sensitivity analysis of the figures cited for future rates of pensioner relative poverty, using alternative assumptions for the effect of the triple lock on the level of the basic state pension and the new state pension, in line with those used by the OBR in its latest Fiscal risks and sustainability report.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Levels of pensioner poverty under the adjusted triple lock are projected to decline with relative pensioner poverty after housing costs estimated to fall from 14% in 2024/25 to 8% by 2049/50. However, the Government is not complacent on the issue of pensioner poverty. This is why we have asked the Pensions Commission to make recommendations on further support for lower-income pensioners in their final report. The Department for Work and Pensions has no plans to publish a separate sensitivity analysis using alternative OBR triple lock assumptions.
Asked by: Lord Davies of Brixton (Labour - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, in the light of the publication of the State Pension uprating analysis on 29 September, whether they intend to provide a version of Chart 1 on Projected changes in pensioner relative poverty which demonstrates pensioner relative poverty after housing costs under the current triple lock.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Government's policy is to move to using the adjusted triple lock from April 2030 and projections are published on a basis consistent with that policy.