State Retirement Pensions: Coronavirus

(asked on 3rd November 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department plans to increase the state pension allowance to account for the increased utility costs of people spending an increased amount of time in their homes during the covid-19 outbreak.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 9th November 2020

The Government is committed to ensuring that older people are able to live with the dignity and respect they deserve, and the State Pension is the foundation of state support for older people. In response to the Covid 19 pandemic, the Government has introduced an Uprating Bill to ensure we can increase State Pension and Pension Credit rates for 2021/22.

In April 2020, full amounts of the basic and new State Pensions increased by 3.9%, in line with average earnings growth. The full yearly rate of the basic State Pension is now worth over £1,900 more than it was in 2010.

The Government has committed to keeping the Winter Fuel Payment. The payment gives reassurance, particularly to poorer pensioners that they can keep warm during the colder months. We will continue to pay £200 for households with somebody who has reached State Pension age and is under age 80 or £300 for households with somebody aged 80 and over. This is a significant contribution towards a household’s winter fuel bill.

Pensioners whose financial circumstances have been affected by the pandemic may be eligible for Pension Credit. Pension Credit tops up a person’s other income to a standard minimum weekly amount – £173.75 for single people or £265.20 for a couple. Extra amounts are also payable in respect of disability, caring (including for children) and certain housing costs. An award of Pension Credit can also provide access to a range of other benefits such as help with housing costs, council tax, heating bills or health costs.

Pension Credit customers who are in receipt of the Pension Credit Guarantee Credit element, are also entitled to the warm home discount providing their energy supplier is part of the scheme. Further details can be found at: https://www.gov.uk/the-warm-home-discount-scheme

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