Pensions and Social Security Debate
Full Debate: Read Full DebateRoger Gale
Main Page: Roger Gale (Conservative - Herne Bay and Sandwich)Department Debates - View all Roger Gale's debates with the Department for Work and Pensions
(5 days, 23 hours ago)
Commons ChamberIn my view, the provisions in the instruments are compatible with the European convention on human rights. The draft Social Security Benefits Up-rating Order will increase relevant state pension rates by 4.8%, in line with the growth in average earnings in the year to May to July 2025. It will increase most other benefit rates by 3.8%, in line with the rise in the consumer prices index in the year to September 2025, so the regular formula has been used.
The order commits the Government to increased expenditure of £9 billion in 2026-27, of which £6 billion will be from state pensions and pensioner benefits, £2 billion from disability and carers benefits, and £1 billion from other working-age benefits. A further £2 billion of expenditure on working-age benefits will be incurred in 2026 as a result of uprating decisions made under separate legal powers in the Universal Credit Act 2025, which will set new rates for universal credit and income-related employment and support allowance.
Let me say a little more about each of the benefits being uprated in turn. First, on pensions, the Government’s commitment to the triple lock means that the basic and full rate of the new state pension will be uprated by the highest of the growth in earnings or prices or 2.5%. That means that the uprating will be by 4.8% for 2026-27. As a result, from April the basic state pension will increase from £176.45 per week to £184.90, and the full rate of the new state pension will increase from £230.25 at the moment to £241.30 per week.
I suppose I ought to declare an interest, Madam Deputy Speaker. [Laughter.]
The right hon. Gentleman will understand that we welcome the adherence to the triple lock that my party introduced. He will also know that there are tens of thousands of expatriate United Kingdom citizens whose pensions have been, and remain, frozen at the point at which they left the United Kingdom, in spite of the fact that they have paid their full taxes and national insurance contributions throughout their working lives in the UK. The last Government, to our shame, failed to address this issue. Do this Government have any plans to do so?
I am grateful to the right hon. Gentleman for raising this point. It might be of some comfort to him to know that it was not only the last Government who failed to do anything about this, and that previous Governments also failed. Indeed, in my previous tenures of the office of Pensions Minister, this issue was raised with me. However, it was the case that when those people left the UK, the rules were then as they are today. They were quite clear when people left. Of course, it depends on which country they went to, but in the countries where uprating has not been applied, it has always been the case that uprating has not been applied there, so it should not have come as a surprise to those who left that their pensions were not uprated. We are not looking at any proposals to change the situation at the moment, but I know that the right hon. Gentleman has campaigned on this matter consistently over a long period and I pay tribute to him for that.