Latest news with #BasicStatePension
Daily Record
21-05-2025
- Politics
- Daily Record
UK Government urged to increase frozen State Pensions for nearly half a million people
Around 453,000 pensioners are living in a country which does not have a reciprocal agreement with the UK Government. Pension Credit – Could you or someone you know be eligible? Cross-party MPs have united to intensify pressure on the UK Government over its refusal to reform the so-called 'frozen pensions' policy, which affects nearly half a million British pensioners living overseas - many of whom are now newly eligible to vote following the 2024 changes to overseas voting rights. Around 453,000 pensioners are living in a country which does not have a reciprocal agreement with the UK Government resulting in them not receiving the annual State Pension uprating. Speaking in a Westminster Hall debate on Tuesday, Gregory Stafford MP led a powerful call for change to State Pension rules, condemning the policy as one shutting out 'half a million voices who feel forgotten, neglected and increasingly betrayed'. The policy, which prevents State Pensions from being increased annually - to counteract the impact of inflation for UK pensioners living in certain countries - means some are receiving as little as £60 per week, far below the current £176.45 rate for the Basic State Pension for those resident in Scotland, England, Wales and Northern Ireland. Most retirees of the so-called Frozen Pensions scandal are located in the Commonwealth. Only British overseas pensioners living in specific countries are impacted, in what Rebecca Smith MP described as "the ultimate postcode lottery'. Those in the USA see the same annual increase as British pensioners living in the UK or France, while those in Australia or Canada, see their State Pension remain 'frozen' and effectively fall in value. For example, 100-year-old Second World War veteran Anne Puckridge, who lived and worked in the UK until the age of 76 and served in all three of the RAF, Navy and the Army, has received just £72.50 per week since 2001, the year she moved to Canada to be nearer her daughter. Jim Shannon MP similarly questioned the logic of the policy applying in only some countries and not others, arguing 'the arbitrary distinction between countries with and without an operating agreement lacks logic and smacks of red tape and bureaucracy gone mad." Stafford and fellow MPs strongly rebutted the Government's long-held defences of the policy. The Minister for Pensions, Torsten Bell MP, was mostly notably challenged on the estimated cost of ending the policy, which is estimated at £55 million per year - 0.04 per cent of the annual State Pension budget - rather than the £950m per year quoted by the Department for Work and Pensions (DWP). The difference explained by the fact the DWP are quoting for uprating and backdating payments to account for the years affected pensioners have been frozen. However, campaigners are instead asking to receive the annual increase from this point onwards. Douglas McAllister MP stressed that campaigners and supportive MPs are 'not seeking a full backdating, but for the Government to introduce some form of yearly indexing to answer that injustice'. Longterm critic of the policy Sir Roger Gale MP argued the policy is 'not a matter of cost. It is a matter of moral responsibility and duty.' The Minister was also reminded by a number of MPs that 'the vast majority of impacted pensioners still report having no knowledge of the policy's existence prior to moving overseas'. Greg Stafford MP called on the Minister to meet with the End Frozen Pensions campaign to discuss how communication might be improved over the policy's existence, and to formally determine the true cost of ending the policy. The DWP Minister did not respond to MPs' calls to meet with campaigners on this issue. Labour MP Neil Duncan Jordan questioned the UK Government's wider approach to support its more vulnerable citizens, arguing that "taken alongside recent decisions to means-test the winter fuel allowance... it could appear that the Government are trying to balance the country's books on the back of some of the poorest members of our society." State Pension payments 2025/26 The DWP has published the full list of State Pension and benefit uprated payments on here, which also includes additional elements such as the deferred rates, which are rising by 1.7 per cent (September Consumer Price Index inflation rate). Full New State Pension Weekly payment: £230.25 Fortnightly payment: £460.50 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Fortnightly payment: £352.90 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 duration of its term 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% Recent analysis released by Royal London revealed only around half of people receiving the New State Pension last year were getting the full weekly amount - and around 150,000 were on less than £100 per week.
Daily Mirror
17-05-2025
- Business
- Daily Mirror
DWP payments for £4,300 yearly boost could be paid within weeks
The DWP has revealed that 77 per cent of all new claims for Pension Credit were processed within 50 working days last year - here's what it means for claimants. Thousands of pensioners could potentially receive a significant cash boost by the end of July. Those eligible for Pension Credit, which is worth up to £4,300 a year, could soon get their first payment and any arrears. The Department for Work and Pensions (DWP) has confirmed that 77 per cent of all new claims for Pension Credit were processed - from initial application to award decision letter - within the target timeframe of 50 working days last year. Pensions Minister Torsten Bell recently stated that the current, average processing time is 52.8 working days - just over 10 weeks. As highlighted by the Daily Record, this implies that older people on a low income making a new claim this month, particularly those who are no longer entitled to the annual Winter Fuel Payment, could receive their first payment and any arrears by the end of July. Processing times will fluctuate depending on the complexity of cases - some may be completed sooner while others may take a bit longer. The full New State Pension is worth £230.25 per week and the full Basic State Pension worth £176.45. However, it's important for all older people - single, married or cohabiting - to ensure they are claiming all the additional financial support they are entitled to this year to help boost their income and offset the ongoing cost of living crisis. Older people making a successful new claim for Pension Credit before September this year will qualify for the 2025/26 Winter Fuel Payment and the higher rate of the devolved Pension Age Winter Heating Payment (Scotland-only). Pension Credit, the most under-claimed benefit, is designed to offer additional financial support to older individuals on a low income, both singles and couples. Currently, nearly 1.4 million older people across Great Britain are receiving this means-tested benefit, which could provide an average of £4,300 in extra support in the upcoming months. Some elderly individuals believe that having savings or owning their home disqualifies them from this means-tested benefit, which can also grant access to assistance with housing costs, heating bills, and Council Tax. However, even an award of just £1 per week can unlock other forms of support. How much could you receive? There are two types of Pension Credit - Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached State Pension age (66). Your weekly income needs to be less than the minimum amount the UK Government deems necessary for living. This is £227.10 for a single person and £346.60 for a couple. These amounts could be higher if you're disabled, a carer, or have certain housing costs. Savings Credit is only available if you reached State Pension age before April 6, 2016, or if you have a partner who reached State Pension age before this date and was already receiving it. Guarantee Credit boosts your weekly income to: £227.10 for a single person £346.60 for a couple (married, in a civil partnership or cohabiting). If you're disabled or a carer, or have certain housing costs, you might be eligible for more than the standard amount. Savings Credit can provide up to £17.30 a week for a single person and £19.36 a week for a couple (whether married, in a civil partnership or cohabiting). The exact sum you'll receive depends on your income and savings, including assumed income from savings and capital over £10,000. Older people, or their friends and family, can swiftly check eligibility and get an estimate of potential benefits using the online Pension Credit calculator on here. Alternatively, pensioners can ring the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday.
Daily Record
16-05-2025
- Business
- Daily Record
DWP to review State Pension, PIP and four other benefits for fraud or errors this year
The DWP confirmed £9.5 billion was overpaid to claimants over the last year. Reasons your Universal Credit may be cut by DWP The Department for Work and Pensions (DWP) pays welfare benefits to around 23.7 million people across Great Britain. That figure includes 13m on the New or Basic State Pension - classed as a contributory benefit - and people claiming at least one DWP benefit. The newly published annual 'Fraud and error in the benefit system' report, which estimates how much money the Department has incorrectly paid in the 2024/25 financial year, either through overpayments or underpayments, indicates that £9.5 billion was overpaid to claimants, 3.3 per cent of the total benefits expenditure. This is down from £9.7bn (3.6%) in 2023/24. The total rate of benefit underpayments remained the same at £1.2bn (0.4%). To qualify for DWP benefits people need to meet certain eligibility criteria and the amount of money they receive depends on their circumstances. DWP explained: 'Sometimes people tell us the wrong information or do not tell us when their circumstances change. Reporting accurate information and providing evidence may change the amount of benefit people are eligible for and in some circumstances, they may be eligible for more money. 'However, we cannot calculate the correct amount unless people tell us accurately about their circumstances. This means that people are not eligible for increases in the amount of money they receive until we have the correct information.' DWP fraud and error review for 2025/26 financial year The DWP confirmed it will be measuring sample cases from six benefits for 'unfulfilled eligibility' over the current financial year. These include: Universal Credit Housing Benefit (pension age, both passported and non-passported cases) Pension Credit State Pension Personal Independence Payment Disability Living Allowance for children Definitions of Fraud, Claimant Error and Official Error The DWP defines the three types of fraud and error. Fraud Claims where all three of the following conditions apply: the conditions for receipt of benefit, or the rate of benefit in payment, are not being met the claimant can reasonably be expected to be aware of the effect on their entitlement benefit payment stops or reduces as a result of the claim review Claimant Error An overpayment has occurred where the claimant has provided inaccurate or incomplete information, or failed to report a change in their circumstances, but there is no evidence of fraudulent intent on the claimant's part. Official Error The benefit has been paid incorrectly due to a failure to act, a delay or a mistaken assessment by DWP, a local authority or HM Revenue and Customs (HMRC), to which no one outside of that department has materially contributed. The DWP report also highlighted that total spending on benefits increased from £266.2bn in 2023/24 to £292.2bn last year. This was an increase of £26.0bn (9.8%) which was mainly due to: State Pension - spending increasing from £123.9bn to £142.0bn Universal Credit spending increasing from £51.9bn to £65.3bn Personal Independence Payment (PIP) spending increasing from £21.6bn to £25.8bn However, DWP said those increases are partially offset by a reduction of £10.2bn (100.0%) in Cost of Living Payments expenditure. DWP plans to publish the 2025/26 findings in May next year.
Daily Record
15-05-2025
- Business
- Daily Record
New calls to give Winter Fuel Payments to millions of people on Basic State Pension
Nearly nine million people are in receipt of the Basic State Pension. A new online petition is calling on Chancellor Rachel Reeves to reinstate the annual Winter Fuel Payment to every older person on the Basic State Pension. There are currently 13million people of State Pension age across the UK, inducing nearly 9million who became eligible for the contributory benefit before April 6, 2016. In the 'reinstate the Winter Fuel Allowance for those who are paid the old State Pension' petition, campaigner Barry Stevens argues that the annual increase to the New and Basic State Pension only 'widens' the divide between the payments. Mr Stevens said: 'Those in receipt of the old State Pension who do not qualify for state benefits are increasingly disadvantaged year on year. We believe the Government should restore the Winter Fuel Allowance to those pensioners involved to remedy the unfairness.' Someone on the full New State Pension now receives £230.25 per week while someone on the full Basic State Pension receives £176.45. The petition has been posted on the Petitions Parliament website. At 10,000 signatures, it will be entitled to a written response from the UK Government. At 100,000 signatures, it would be considered by the Petitions Committee for debate by MPs in Parliament. The Scottish Government will introduce a universal Winter Fuel Payment for more than one million pensioners through the new, devolved Pension Age Winter Heating Payment (PAWHP) this year. This means that every person over State Pension age living in Scotland will receive a one-off heating payment of at least £100 next winter - even if they are not in receipt of a means-tested benefit such as Pension Credit. The Scottish Government has also announced that the annual uprating of benefits for the 2025/26 financial year will be applied to PAWHP. This means older people on a qualifying income-related benefit aged between 66 and 79 will receive £203.40 (lower rate), while those aged 80 and over will be paid £305.10 (higher rate). Winter Fuel Payments for 2025/26 have not yet been announced by the Department for Work and Pensions (DWP), but are expected to remain at current levels of £200 and £300, the amount following the same age guidance as PAWHP. Full details about PAWHP can be found on here, just be aware the information on the Scottish Government website has not been updated yet for the 2025/26 financial year. The DWP estimates around 760,000 people across Great Britain are entitled to Pension Credit, yet not claiming it. The good news is there is plenty of time to put in a new claim to boost the amount of PAWHP or Winter Fuel Payment you receive later this year. The qualifying period for both payments will be the third week in September (15-21, 2025) and with DWP taking on average 50 working days to process new claims, an application submitted by mid-July which later turns out to be successful, will be entitled to the heating bill help. It's important to note that clams made up until the end of the qualifying week in September, which later turn out to be successful, will also be due the payment but it may arrive later than the planned delivery schedule. The date in July should ensure there's no waiting on a backdated payment. An award of just £1 per week is enough to unlock other support, including the Pension Age Winter Heating Payment or the Winter Fuel Payment. Quickest way to check eligibility for Pension Credit Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on here. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday. Expert help and advice is also available from: Independent Age Income Max Citizens Advice Age UK Below is an overview of the benefit including who should check eligibility, how to go about it and how much you could get. Pension Credit in a nutshell Pension Credit gives people extra money to help with their living costs if they are over State Pension age and on a low income. It can also provide access to a range of other benefits. The benefit tops up income to a minimum of £227.10 per week for single pensioners and £346.60 for couples - more if a person has a disability or caring responsibilities. Other help if you get Pension Credit If you qualify for Pension Credit you can also get other help, such as: Housing Benefit if you rent the property you live in Support for Mortgage Interest if you own the property you live in Council Tax discount Free TV licence if you are aged 75 or over Help with NHS dental treatment, glasses and transport costs for hospital appointments Help with your heating costs through the Warm Home Discount Scheme, Pension Age Winter Heating Payment and Winter Fuel Payment A discount on the Royal Mail redirection service if you are moving house Mixed aged older couples and Pension Credit In May 2019, the law changed so a 'mixed age couple' - a couple where one partner is of State Pension age and the other is under it - are considered to be a 'working age' couple when checking entitlement to means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age. How to use the Pension Credit calculator To use the calculator on you will need details of: earnings, benefits and pensions savings and investments You'll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options. This includes: Your date of birth Your residential status Where in the UK you live Whether you are registered blind Which benefits you currently receive How much you receive each week for any benefits you get Whether someone is paid Carer's Allowance to look after you How much you get each week from pensions - State Pension, private and work pensions Any employment earnings Any savings, investments or bonds you have Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week. All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support. There's also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you're receiving all the financial support you are entitled to claim. Who cannot use the Pension Credit calculator? You cannot use the calculator if you or your partner: are deferring your State Pension own more than one property are self employed have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit How to make a claim You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months. This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time. You will need: your National Insurance number information about your income, savings and investments your bank account details, if you're applying by phone or by post If you're backdating your claim, you'll need details of your income, savings and investments on the date you want your claim to start. Apply online You can use the online service if: you have already claimed your State Pension there are no children or young people included in your claim To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the Pension Credit calculator here to find out how much you could get.
Daily Record
15-05-2025
- Business
- Daily Record
New Pension Credit claims for £4,300 annual income boost could be paid before end of July
Pension Credit claims can be backdated by up to three months and provide access to heating help later this year. The Department for Work and Pensions (DWP) has confirmed that 77 per cent of all new claims for Pension Credit were processed - from initial application to award decision letter - within the target timeframe of 50 working days last year. Pensions Minister Torsten Bell recently said that the current, average processing time is 52.8 working days - just over 10 weeks. This means older people on a low income making a new claim this month, especially those who are no longer entitled to the annual Winter Fuel Payment, could receive their first payment and any arrears by the end of July. It's important to be aware processing times will vary depending on the complexity of cases, some may be completed sooner while others may take a bit longer. The full New State Pension i worth £230.25 per week and the full Basic State Pension worth £176.45, however, it's crucial for all older people - single, married or cohabiting - to make sure they are claiming all the additional financial support they are entitled to this year to help boost their income and offset the ongoing cost of living crisis. Older people making a successful new claim for Pension Credit before September this year will qualify for the 2025/26 Winter Fuel Payment and the higher rate of the devolved Pension Age Winter Hating Payment (Scotland-only). Pension Credit is the most under-claimed benefit and is specifically aimed at providing additional financial support for older people on a low income - singles and couples. Nearly 1.4 million older people across Great Britain, including more than 125,000 living in Scotland, are currently receiving the means-tested benefit that could provide an average of £4,300 in extra support during the coming months. Some older people think because they have savings or own their home they would not be eligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax. However, an award of just £1 per week is enough to unlock other support. Below is an overview of the benefit including who should check eligibility, how to go about it, how much you could get and where to get help filling in the form. Who can claim Pension Credit? There are two types of Pension Credit - Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on. This is £227.10 for a single person and £346.60 for a couple - this amount could be higher if you're disabled, a carer or have certain housing costs. You can only get Savings Credit if: you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it How much could you receive from DWP? Guarantee Credit tops up your weekly income to: £227.10 for a single person £346.60 for a couple (married, in a civil partnership or cohabiting) You might be able to get more than this if you're disabled or a carer, or you have certain housing costs. Savings Credit can give you up to: £17.30 a week for a single person £19.36 a week for a couple (married, in a civil partnership or cohabiting). The exact amount you'll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000. How to check eligibility for Pension Credit Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on here. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday. Expert help and advice is also available from: Independent Age Income Max Citizens Advice Age UK More details about claiming Pension Credit can be fond on here. Other help if you get Pension Credit If you qualify for Pension Credit you can also get other help, such as: Housing Benefit if you rent the property you live in Support for Mortgage Interest if you own the property you live in Council Tax discount Free TV licence if you are aged 75 or over Help with NHS dental treatment, glasses and transport costs for hospital appointments Help with your heating costs through the Warm Home Discount Scheme, Winter Fuel Payments or Pension Age Winter Heating Payment A discount on the Royal Mail redirection service if you are moving house Mixed aged older couples and Pension Credit In May 2019, the law changed so a 'mixed age couple' - a couple where one partner is of State Pension age and the other is under it - are considered to be a 'working age' couple when checking entitlement to means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age. How to use the Pension Credit calculator To use the calculator on you will need details of: earnings, benefits and pensions savings and investments You'll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options. This includes: Your date of birth Your residential status Where in the UK you live Whether you are registered blind Which benefits you currently receive How much you receive each week for any benefits you get Whether someone is paid Carer's Allowance to look after you How much you get each week from pensions - State Pension, private and work pensions Any employment earnings Any savings, investments or bonds you have Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week. All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support. There's also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you're receiving all the financial support you are entitled to claim. Who cannot use the Pension Credit calculator? You cannot use the calculator if you or your partner: are deferring your State Pension own more than one property are self employed have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit How to make a claim You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months. This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time. You will need: your National Insurance number information about your income, savings and investments your bank account details, if you're applying by phone or by post If you're backdating your claim, you'll need details of your income, savings and investments on the date you want your claim to start. Apply online You can use the online service if: you have already claimed your State Pension there are no children or young people included in your claim To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the Pension Credit calculator here to find out how much you could get.
