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New update on calls to increase State Pension to £427 each week to match minimum wage

New update on calls to increase State Pension to £427 each week to match minimum wage

Daily Record03-06-2025
More than 10,000 people have signed an online petition supporting calls to increase the State Pension to match the National Living Wage rate.
More than 10,100 people have signed an online petition urging the UK Government to increase the New State Pension from £11,973 a year to £22,000, matching the annual income of someone working a 35-hour week on the National Living Wage. The petition is now entitled to a written response, most-likely from the Department for Work and Pensions (DWP).
The proposal put forward by Ken Marshall has been posted on the UK Government's Petitions Parliament website and would see all pensioners receive £427.35 each week - some £1,709 every four-week payment period - in-line with the 2025/26 National Living Wage rate of £12.21 per hour.

The campaigner argues that the discrepancy between the State Pension and National Living Wage payments is 'distressing' and 'we must not allow our senior citizens, who have contributed so much to our society, to struggle through their sunset years'.

Mr Marshall says that bringing the payments for 13 million pensioners into line with the National Living Wage is a 'matter of fairness and respect'.
The 'pay pensioners the equivalent of the living wage of a 35 hour week ' petition has been posted on the Petitions Parliament website and states: 'The full rate of the New State Pension is now £11,973 a year, while the annual income derived from the National Living Wage for a 35-hour week will be above £22,000. We think there is a distressing discrepancy between these two figures.
'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.'
It concludes: '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 elderly person in our society has to face financial hardship.'
At 100,000, the petition would be considered by the Petitions Committee for debate in Parliament. You can view it in full here.

National Minimum Wage rates 2025/26
The National Minimum Wage for people over 21 is now:
£12.21 per hour
£427.35 for a typical 35-hour working week
£,709.40 every four-week pay period or £1,851.85 per month
£22,222.20 over the 2025/26 financial year
State Pension payment rates 2025/26
Full New State Pension

Weekly payment: £230.25
Four-weekly payment: £921
Annual amount: £11,973
Full Basic State Pension
Weekly payment: £176.45
Four-weekly payment: £705.80
Annual amount: £9,175

Future State Pension increases
The Labour Government has pledged to honour the Triple Lock or the next five years and the latest predictions show the following projected annual increases:
2025/26 - 4.1% (the forecast was 4%)
2026/27 - 2.5%
2027/28 - 2.5%
2028/29 - 2.5%
2029/30 - 2.5%

The Department for Work and Pensions (DWP) recently rejected proposals in a similar petition calling for the State Pension to increase to £549 every week for every person over the age of 60.
In a written response earlier this year, the DWP said that the UK Government 'has no plans to make State Pension available from the age of 60 or to increase State Pension to equal 48 hours of work a week at the National Living Wage'.
The DWP response said that the UK Government is 'committed to supporting current and future generations of pensioners and giving them the dignity and security they deserve in retirement' and highlighted Labour's commitment to the Triple Lock for the duration of this Parliament.

The DWP continued: 'The State Pension and the National Living Wage have different purposes, and a direct comparison cannot be drawn. The National Living Wage is designed to protect low-income workers and provide an incentive to work.
'It is also worth noting that while State Pension is an entitlement based on a person's National Insurance record, it is legally a benefit. From the time of the 1946 National Insurance Act, which applied from the inception of the National Insurance scheme, retirement pension (latterly also known as State Pension), has always been classified in law as a 'benefit'.'
DWP also explained how the New State Pension was introduced in 2016 to be a 'simpler, clearer, sustainable foundation for private saving, including workplace pensions supported through Automatic Enrolment'.

DWP added: 'The introduction of Automatic Enrolment has both increased and equalised workplace pension participation rates between eligible men and women in the private sector. Together, the New State Pension and Automatic Enrolment provide a robust system for retirement provision for decades to come, with those on low incomes supported by Pension Credit which continues to provide a safety net.'
The DWP also said there are no plans to bring the State Pension age back down to 60, explaining how it is a pay-as-you-go system funded by current taxpayers.
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