Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of (a) the withdrawal of winter fuel payments, (b) frozen tax thresholds and (c) state pension taxation on pensioner households.
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 additional annual revenue received from taxing state pensions from April 2026.
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: Al Pinkerton (Liberal Democrat - Surrey Heath)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to support older people in financial hardship in Surrey Heath constituency.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government is committed to supporting pensioners and giving them the financial security and dignity they deserve. The State Pension is the foundation of support for older people and together with the private and workplace pensions system provides for security in retirement. That’s why we have made a commitment to the Triple Lock for the entirety of this Parliament which will see the forecast annual spend on people’s State Pensions rise by around £31 billion.
In April this year, the basic and new State Pensions increased by 4.1%, benefitting 12 million pensioners by up to £470 this year. That’s up to £275 more than if pensions had been up rated by inflation. The standard minimum guarantee in Pension Credit, which provides a vital safety net for around 1.4m pensioners on the lowest incomes, also increased by 4.1%. Pension Credit can passport pensioners to a range of extra support including help with rent, council tax reduction, fuel bills (via the Warm Home Discount scheme and Cold Weather Payments) and a free TV licence for those over 75. We have been running the biggest ever Pension Credit campaign across Great Britain since Autumn 2024. Our drive to maximise Pension Credit take-up has seen the Department receive around 285,600 claims from July 2024 to May 2025 with almost 60,000 extra awards on the comparable period the previous year. Further promotional activity is planned from this Autumn through to the end of the financial year, as part of a nationwide campaign aimed at eligible pensioners, their friends and their families – including those in Surrey Heath.
The Household Support Fund also continues to provide support to those most in need, including older people in financial hardship. The Government has extended it in England until 31 March 2026 with funding of £742 million – and additional corresponding funding for the devolved administrations.
Asked by: Scott Arthur (Labour - Edinburgh South West)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to (a) reduce pensioner poverty and (b) increase pension benefit uptake.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government is committed to supporting pensioners and giving them the financial security and dignity they deserve. The State Pension is the foundation of support for older people and together with the private and workplace pensions system provides for security in retirement. That’s why we have made a commitment to the Triple Lock for the entirety of this Parliament which will see the forecast annual spend on people’s State Pensions rise by around £31 billion.
In April this year, the basic and new State Pensions increased by 4.1%, benefitting 12 million pensioners by up to £470 this year. That’s up to £275 more than if pensions had been up rated by inflation. The standard minimum guarantee in Pension Credit, which provides a vital safety net for around 1.4m pensioners on the lowest incomes, also increased by 4.1%. Pension Credit can passport pensioners to a range of extra support including help with rent, council tax reduction, fuel bills (via the Warm Home Discount scheme and Cold Weather Payments) and a free TV licence for those over 75. We have been running the biggest Pension Credit campaign since Autumn 2024. Our drive to maximise Pension Credit take-up has seen the Department receive around 285,600 claims from July 2024 to May 2025 with almost 60,000 extra awards on the comparable period the previous year. Further promotional activity is planned from this Autumn through to the end of the financial year with the campaign aimed at eligible pensioners, their friends and their family.
Asked by: Adam Dance (Liberal Democrat - Yeovil)
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 adequacy of the weekly State Pension rate for people in (a) rural communities and (b) Yeovil constituency.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government is committed to ensuring that the State Pension provides a foundation for income in retirement. From the end of this Parliament, spending on the State Pension is forecast to be around £31 billion more a year, compared with 2024/25 as a result of our commitment to protect the Triple Lock. This will see pensioners’ yearly incomes rising by up to £1,900.
Several benefits provide supplementary support for those on low incomes. This includes direct financial help to low-income pensioners through Pension Credit, the Warm Home Discount and (in England & Wales) Cold Weather Payments. The Household Support Fund in England also provides discretionary support towards the cost of essentials.
All pensioners also continue to benefit from free eye tests, free NHS prescriptions and free bus passes.
The Department continues to monitor pensioner outcomes and benefit take-up to ensure support reaches those who need it most.
Asked by: Rosena Allin-Khan (Labour - Tooting)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to improve pension replacement rates.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Our system of state, private and workplace pensions provide the basis for security in retirement. The State Pension provides a foundation to support people’s individual savings for retirement. The Government has made a commitment to the Triple Lock for the entirety of this Parliament which means annual spending on people’s State Pensions is forecast to rise by over £31 billion over this Parliament. This will see pensioners’ yearly incomes being up to £1,900 higher.
Automatic Enrolment (AE) has succeeded in transforming workplace retirement saving. Over 11 million employees have been automatically enrolled into a workplace pension since 2012. However, we know we need to do more to build on the success of AE.
The government will soon be launching the next phase of the Pensions Review, which will focus on improving pensions outcomes.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps her Department is taking to support pensioners with the cost of living in South Holland and the Deepings constituency.
Answered by James Murray - Chief Secretary to the Treasury
This Government remains committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
On 9 June the Government announced that, from this winter 2025-26, Winter Fuel Payment eligibility will be expanded in England and Wales. Pensioners with incomes below or equal to £35,000 will benefit from a Winter Fuel Payment. This will mean that the vast majority of pensioners over three quarters, or 9 million—will benefit from a Winter Fuel Payment. This change ensures that the means-testing of winter fuel payments has no effect on pensioner poverty.
Through our commitment to protect the Triple Lock around 26,000 pensioners in South Holland and the Deepings constituency benefitted 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.
Support available beyond the State Pension includes: free eye tests; NHS prescriptions; and free bus passes. Some pensioners may also qualify for means tested benefits including Pension Credit and Housing Benefit.
Asked by: Andrew Ranger (Labour - Wrexham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to support women affected by changes to the State Pension age.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government remains 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 GB, 5.8% of GDP. This includes spending on the State Pension which is forecast to be £145.6 billion in 2025-26.
Our commitment to the Triple Lock also means that the annual spend on State Pensions is forecast to rise by around £31 billion this Parliament.
The basic and new State Pensions recently increased by 4.1%, benefitting 12 million pensioners by up to £470 this year. That’s up to £275 more than if pensions had been up rated by inflation.
There is also supplementary support for those on low incomes. This includes direct financial help to low-income pensioners through Pension Credit, the Warm Home Discount and (in England & Wales) Winter Fuel Payments and Cold Weather Payments.
Finally, support is available through the welfare system to those who are unable to work or are on a low income but are not eligible to pensioner benefits because of their age.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the potential impact of changes to the Winter Fuel Payment on living standards for pensioners in Harpenden and Berkhamsted.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government is, protecting pensioners on the lowest incomes. Winter Fuel Payments will continue to be paid to pensioner households with someone receiving Pension Credit or other qualifying means-tested benefits or tax credits. They will continue to be worth £200 for eligible households, or £300 for eligible households with someone aged 80 or over.
The last Labour Government lifted over one million pensioners out of poverty, and this Government – despite having to make the tough decisions to deal with our dire inheritance - remains absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement. Our commitment to the Triple Lock means that spending on State Pensions is forecast to rise by around £31 billion over this Parliament.
While the State Pension is the foundation of state support for older people, other help is also available for low-income pensioners. This includes Cold Weather Payments in England & Wales and help with energy bills via the Warm Home Discount scheme, as well as the Household Support Fund in England, which we extended for a further year with funding of £742 million, with corresponding funding for the Devolved Governments through the Barnett formula.
Asked by: Stuart Anderson (Conservative - South Shropshire)
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 impact of restricting eligibility for Winter Fuel Payments on levels of pensioner poverty in rural areas.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The last Labour Government lifted over one million pensioners out of poverty, and this Government – despite having to make the tough decisions to deal with our dire inheritance remains absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
Winter Fuel Payments will continue to be paid to pensioner households with someone receiving Pension Credit or other qualifying means-tested benefits or tax credits. They will continue to be worth £200 for eligible households, or £300 for eligible households with someone aged 80 or over.
The latest Pension Credit applications and awards statistics were published on 27 February and are available at: https://www.gov.uk/government/statistics/pension-credit-applications-and-awards-february-2025/pension-credit-applications-and-awards-february-2025
The statistics show that the Department received 235,000 Pension Credit applications in the 30 weeks since the Winter Fuel Payment announcement – an 81% increase on the comparable period in 2023/24 and made 117,800 new Pension Credit awards – a 64% increase or 45,800 extra awards on the comparable period in 2023/24.
We are honouring our commitment to the Triple Lock. In April, the basic and new State Pensions increased by 4.1% and some 12 million pensioners will see an increase of up to £470 over this financial year. Our commitment to the Triple Lock also means that spending on State Pensions is forecast to rise by around £31 billion over this Parliament.
And while the State Pension is the foundation of state support for older people, other help is also available for low-income pensioners. This includes Cold Weather Payments in England & Wales; help with energy bills via the Warm Home Discount scheme as well as the Household Support Fund in England which we extended for a further year with funding of £742 million, with corresponding funding for the Devolved Governments through the Barnett formula.