Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps his Department is taking to ensure that pensioners who retired before April 2016 do not fall into poverty.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government is committed to supporting pensioners and ensuring they have financial security and dignity in retirement.
The State Pension remains the foundation of our support for pensioners. In April this year, both the basic and new State Pensions increased by 4.1%, benefitting over 12 million pensioners by up to £470. And our commitment to maintain the Triple Lock – helping to protect the value of the State Pension – for the entirety of this Parliament will see pensioners’ yearly incomes rise significantly.
Pensioners who reached State Pension age before April 2016, and therefore receive the basic State Pension, may also receive an earnings-related additional State Pension (also known as the State Earnings-Related Pension Scheme (SERPS) or from April 2002 the State Second Pension) and Graduated Retirement Benefit. This means that although the rate of the basic State Pension is set below the rate of the new State Pension, a person who retired before April 2016 may be receiving a larger amount of pension than just the basic rate – and in many cases above the level of the new State Pension.
Pension Credit continues to provide vital financial support for pensioners who, for whatever reason, have been unable to save for or contribute towards their retirement and find themselves on a low income. It was introduced by the last Labour Government specifically to help prevent pensioners falling into poverty and it does this by guaranteeing a minimum level of income, currently £227.10 week for a single pensioner or £346.40 week for a couple. For pensioners who reached State Pension age before April 2016, the Savings Credit element of Pension Credit also provides a tapered award for those with other income such as a modest private or occupational pension.
Receipt of Pension Credit opens the door to other financial support, including Housing Benefit, Council Tax support and help with NHS costs as well as help with fuel bills and a free TV licence for those over 75.
That is why we continue to promote Pension Credit to eligible pensioners and their family and friends, with our ongoing campaign featuring adverts on television and radio; on social media and on digital screens in GP surgeries and Post Offices, as well as in the press.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential merits of establishing an Older People’s Commissioner for England.
Answered by Diana Johnson - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions has not made an assessment on an Older People’s Commissioner. Our commitment to the pensions Triple Lock throughout this Parliament will see millions of pensioners receive up to £470 more this year added to their State Pension and our increased income threshold for Winter Fuel Payments of £35,000 a year will see over three quarters of pensioners in England and Wales receiving the payment later this Winter.
DWP currently offers employment support for those older jobseekers affected by low confidence, menopause, health and disability or caring pressures, and out of date skills or qualifications. Through Midlife MOTs, delivered in Jobcentres across the UK, and online, we support older people to assess their health, finances and skills.
The Government is reforming Jobcentre Plus and creating a new jobs and careers service that will enable everyone, including the over-50s, to access support to find good, meaningful work, and support to help them progress in their careers. This includes an enhanced focus on skills and careers advice.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an estimate of the number of state pensioners that have had their taxable pension income miscalculated due to HMRC applying 52 weeks of the uprated rate rather than accounting for the weeks paid at the previous year’s rate.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast.
In line with the Government's commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners have benefitted from a 4.1 per cent increase to their basic or new State Pension this year. Those on a full new State Pension will be getting an additional £470 a year. The extra income comes on top of a substantial increase in 2024/25, which saw those receiving a full new State Pension get a £900 boost.
When it comes to taxes, social security benefits are treated differently depending on why they are paid. Generally, benefits that replace income, like the State Pension, are taxable. The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
Most pensioners who pay tax on their State Pension are in Pay As You Earn. For these customers, HMRC calculates how much State Pension an individual accrues each year by calculating one week at the old rate of State Pension and 51 weeks at the new rate and adjusting their tax code accordingly. This means most pensioners pay the right amount of tax in real time.
HMRC has become aware that for a sub-set of individuals in receipt of the State Pension, a calculation error means that their tax is calculated based on 52 weeks at the new rate. The difference in tax owed is approximately £5. Affected individuals can call HMRC to amend any incorrect figures of State Pension.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure HMRC tax calculations accurately reflect the period in which state pension upratings apply; and whether HMRC has a planned date for resolving this issue.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast.
In line with the Government's commitment to the Triple Lock for the duration of this parliament, over 12 million pensioners have benefitted from a 4.1 per cent increase to their basic or new State Pension this year. Those on a full new State Pension will be getting an additional £470 a year. The extra income comes on top of a substantial increase in 2024/25, which saw those receiving a full new State Pension get a £900 boost.
When it comes to taxes, social security benefits are treated differently depending on why they are paid. Generally, benefits that replace income, like the State Pension, are taxable. The Personal Allowance - the amount an individual can earn before paying tax - will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
Most pensioners who pay tax on their State Pension are in Pay As You Earn. For these customers, HMRC calculates how much State Pension an individual accrues each year by calculating one week at the old rate of State Pension and 51 weeks at the new rate and adjusting their tax code accordingly. This means most pensioners pay the right amount of tax in real time.
HMRC has become aware that for a sub-set of individuals in receipt of the State Pension, a calculation error means that their tax is calculated based on 52 weeks at the new rate. The difference in tax owed is approximately £5. Affected individuals can call HMRC to amend any incorrect figures of State Pension.
Asked by: Edward Morello (Liberal Democrat - West Dorset)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what support is available for women born in the 1950s impacted by State Pension age changes in West Dorset constituency.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
We are absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The State Pension is the foundation of state support for older people. In 2025-26 we will spend £174.9 billion on benefits for pensioners in Great Britain, 5.8% of GDP. This includes spending on the State Pension which is forecast to be £145.6 billion in 2025-26
Through our commitment to protect the Triple Lock both the basic and new State Pensions increased by 4.1% in April, benefitting over 12 million pensioners by up to £470. That’s up to £275 more than if pensions had been uprated by inflation.
From the end of this Parliament, spending on the State Pension as a result of our commitment to protect the Triple Lock is forecast to be around £31 billion more a year, compared with 2024/25. This will see pensioners’ yearly incomes rising by up to £1,900.
Pension Credit provides vital financial support for pensioners, with 66% of those receiving support being women. It tops up state and private pensions to a guaranteed weekly minimum - the Standard Minimum Guarantee. This also increased by 4.1% in April and is now £227.10 pw for a single person and £346.60 pw for couples. Additional amounts can be paid in respect of disability, caring responsibilities and certain housing costs.
The Government wants all pensioners to get the support to which they are rightly entitled. That is why we ran the biggest ever Pension Credit take-up campaign, which included adverts on television, radio, social media, on YouTube, on advertising screens in post offices and GP surgeries as well as in the press. The next stage of the campaign starts this month and will run through to the end of the financial year.
The Government offers further direct financial help to low-income pensioners through the Warm Home Discount, providing eligible households across Great Britain with £150 off their winter energy bill. We have also extended the Household Support Fund for an additional year until 31 March 2026.
For those people who are unable to work but who are not yet eligible for pensioner benefits because of their age, financial support is available through the welfare system.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing a separate personal allowance for pensioners.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Chancellor of the Exchequer on ensuring that pensioners with no other income do not pay income tax on the state pension.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with relevant stakeholders on exempting the state pension from income tax.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of freezing the personal allowance on pensioners whose sole income is the state pension.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of pensioners brought into paying income tax in the next financial year as a result of the state pension exceeding the personal allowance.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The commitment to protect the Triple Lock saw over 12 million pensioners benefit from a 4.1% increase to their basic or new State Pension in April 2025. Over the course of this Parliament, the full yearly rate of the new State Pension is expected to increase by around £1,900 based on the Office for Budget Responsibility’s latest forecast.
The Personal Allowance will continue to exceed the basic and full new State Pension in 2025/26. This means pensioners whose sole income is the full new State Pension or basic State Pension without any increments will not pay any income tax.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility and so decided not to extend the freeze on personal tax thresholds at Budget 2025.
From this winter pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments from this winter. This threshold is broadly in line with average earnings. It ensures the vast majority of pensioners – over three quarters, and around 9 million individuals in England and Wales - will receive support. It also ensures the means testing of Winter Fuel Payments has no effect on pensioner poverty. The relevant impact assessments are available on gov.uk:
Equality Impact Assessments produced for targeting Winter Fuel Payment - GOV.UK
Winter Fuel Payments eligibility change - internal modelling on pensioner poverty levels - GOV.UK.