Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of mitigating the combined impact of increased taxation and reduced benefit entitlement on low-income pensioners with no additional earnings or savings.

It is a key priority for this Government to ease pressures on the cost of living. We remain firmly committed to protecting the most vulnerable pensioners and ensuring financial security in retirement.

The State Pension will remain the foundation of retirement income . In line with the Government’s commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners will benefit from a 4.8% increase to their basic or new State Pension in April 2026, worth up to £575 a year. This follows a substantial increase in 2025/26, when those on the full new State Pension received a £360 boost.

Furthermore, the Chancellor has said that those whose only income is the basic or new State Pension without any increments will not have to pay income tax over this Parliament. At the Budget, the Government announced that it will achieve this by easing the administrative burden for pensioners so that they do not have to pay small amounts of tax via Simple Assessment from 2027/28. The Government will set out more details next year.

The Pension Credit Standard Minimum Guarantee will also increase by 4.8% in April 2026, from £227.10 to £238 a week for single pensioners and from £346.60 to £363.25 for couples, protecting the poorest pensioners. Over three quarters of pensioners will benefit from the Winter Fuel Payment for the duration of this Parliament, targeting help at those on lower and middle incomes while ensuring fairness for taxpayers.

Pensioners also benefit from free eye tests, NHS prescriptions and bus passes, and some may qualify for means tested benefits such as Housing Benefit and Cold Weather Payments.