Thousands call for pension rise due to ‘distressing discrepancy’ | Retirement | Finance
Thousands of Brits are calling for an increase in the State Pension, claiming that more than £22,000 a year is needed. A petition garnering more than 13,000 signatures has been submitted to Parliament for consideration.
As part of their demands, the petitioners say that pensioners should be paid the “equivalent of the living wage of a 35-hour week”. Currently the full rate of the New State Pension is £11,973 a year.
In contrast, the annual income derived from the living wage for a 35-hour week is above £22,000. “We think there is a distressing discrepancy between these two figures,” campaigners said.
They continued: “We must not allow our senior citizens, who have contributed so much to our society, to struggle through their sunset years. We consider that it is a matter of fairness and respect.
“We all deserve a decent life when we get old. We believe that all pensioners must receive the equivalent of the living wage at 35 hours a week as a minimum. This could ensure a better quality of life for our country’s senior citizens and help ensure that no elder person in our society has to face financial hardship.”
When a petition reaches 10,000 signatures the Government must provide a response. In a written reply, the Department for Work and Pensions (DWP), said there were “no plans” to pay pensioners the equivalent of the living wage of a 35-hour week.
It said: “Support for pensioners is available via the State Pension and a suite of other benefits.” However, the DWP said: “We are committed to ensuring economic security for people at every stage of their life, including when they reach retirement.
“This petition suggests increasing the State Pension to equal 35 hours a week at the National Living Wage (NLW). The two have different purposes and a direct comparison cannot be drawn.
“The NLW aims to protect low-income workers and provide an incentive to work by ensuring that workers benefit from being employed.
“Comparisons made in this petition between headline State Pension payments and the NLW do not consider the full package of measures available to support people in retirement.”
It highlighted how the Government is set to spend over £174 billion directly on the State Pension and benefits for pensioners in Great Britain in 2025/26. The DWP added that additional support for low-income pensioners is available through:
- Pension Credit (which also acts as a gateway to other benefits and discounts like help with council tax and a free TV licence)
- Winter Fuel Payment
- Warm Home Discount
- Housing Benefit (help with rent)
- Discretionary Housing Payments.
It said: “Pensioners with a long-term health condition or disability may also be eligible for additional-costs disability benefits. In England and Wales these are Attendance Allowance, Disability Living Allowance and Personal Independence Payment.
“In Scotland, where this is a devolved matter, they are the Scottish Government’s Pension Age Disability Payment, Adult Disability Payment and, from March 2025, Scottish Adult Disability Living Allowance.
“All these reserved and devolved benefits also give rise to a disability addition in Pension Credit. Entitlement to Carer’s Allowance, or to the Scottish Government’s Carer Support Payment, gives rise to a carer addition in Pension Credit.”
If the petition reaches 100,000 signatures it will be considered for debate in Parliament.