Pension Credit

Baroness Greengross Excerpts

Monday 8th March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

Whether a person is eligible for pension credit and how much they can get is, as with other means-tested benefits, determined by their financial and personal circumstances, which can be complex. The noble Baroness’s point about technology and vulnerable and elderly pensioners is well made. We try to encourage stakeholders who represent this group, family and friends to do it on their behalf. They can also use the government telephone number.

[Baroness Greengross (CB) [V]]

My Lords, would it not make more sense for the Government to use state resources to support increasing the take-up of pension credit, rather than continuing the policy of the triple lock on state pensions, given that so many people over state pension age continue to work full time or have other incomes? Would taxpayer funds not be better spent promoting pension credit widely, which would increase state assistance for older people in financial need?

Social Security (Up-rating of Benefits) Bill

Baroness Greengross Excerpts

2nd reading
Tuesday 13th October 2020 Grand Committee

[Baroness Greengross (CB)]

My Lords, I totally support the intention of this Bill, which ensures that the triple lock is maintained for pensioners. It is extremely important that older people who rely on their pensions do not fall into poverty, especially during this crisis which is hitting them so hard. However, older people who continue to work are not really pensioners; they are older workers. According to the May 2018 Office for National Statistics figures for December 2017 to February 2018, just under 1.2 million people over the age of 65 were in work. That is 10.2% of the entire age group.

The Equality Act 2010 includes provisions that ban age discrimination against adults in the provision of services and public functions. The ban came into force on 1 October 2012 and it is now unlawful to discriminate based on age. When someone receives a pension, they pay tax on any income above their tax-free personal allowance. They cease to pay national insurance on reaching the state pension age, regardless of whether they remain in employment.

The triple lock ensures that the state pension increases each year, using three different components—price inflation, earnings growth and 2.5%. The highest of the three, measured the previous September, is used to increase the pension each April. For the current financial year, UK Government borrowing could be anywhere from £263 billion to £391 billion, according to the Office for Budget Responsibility. People who continue to work over the age of eligibility for a state pension do not need their pensions triple-locked. In today’s attitudes and legislation, these people are older workers not pensioners and, in my view, they should be taxed like other workers in our society.