DWP update as almost half a million State Pensioners receive payment boost
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State Pensioners over a certain age have seen a modest increase in their payments, with the UK Government confirming in Parliament the additional 25p weekly sum awarded to those on the basic State Pension when they reach 80.
Those born in 1944 or earlier, as well as individuals who have turned 80 this year and are on the basic State Pension, are entitled to this slight boost. The extra payment for people in their 80s was first introduced in 1971.
At that time, the State Pension stood at £6 per week, making the 25p rise a notable 4% increase. In today's terms, it amounts to an annual uplift of just £13.
Despite the passage of time, ministers have not raised the additional payment since its inception, akin to the static £10 Christmas Bonus that pensioners receive during the holiday season, which has also remained unchanged since 1971. Labour MP Jonathan Davies questioned the total administrative cost of the 25p increase and whether it surpasses the amount actually given to beneficiaries.
Pensions minister Torsten Bell assured that the 25p age addition is "simple to administer", stating: "Payments are made automatically as part of the person's ongoing State Pension entitlement. The administration costs are therefore negligible," reports Kent Live.
However, the minister acknowledged that some expenses are incurred by the DWP in informing individuals approaching their 80th birthday about the modest pay increase. Mr Bell said: "In 2024, 474,239 letters were issued to inform people that they were now entitled to the age addition, costing £278,030 in printing and postage.
"In 2024/2025, the annual cost of the 25p age addition to the State Pension for those eligible 80+ is estimated to be £50.8million. Administrative costs therefore do not exceed the total amount paid."
A research briefing issued by Parliament in 2013 about the extra 25p explained the thinking behind the policy: "Pensioners aged 80 and over receive an addition of 25 pence to their State Pension. The age addition was introduced in 1971, in recognition of 'the special claims of very elderly people who on the whole need help rather more than others'.
"It has never been uprated, with successive Governments either arguing that greater priority should be given to protecting the level of the basic benefits, or choosing to target additional resources at older pensioners by other means, for example, through means-tested benefits or lump sum payments, such as the Winter Fuel Payment."
State pensioners received a 4.1% increase to their payments from April in line with the triple lock. This increased the full basic state pension from £169.50 a week to £176.45 a week. To receive the full basic State Pension, you generally need 30 years of National Insurance contributions.
The full new State Pension now stands at £230.25 a week, up from £221.20 a week since April. You can find out your projected State Pension amount using the State Pension forecast tool on the Government's website.
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