UK State Pension Set for Significant Increase Amid Controversial Cuts to Winter Fuel Payments

The Treasury has announced that the new full state pension is expected to rise by more than £400 a year in cash terms due to the triple lock system.

This increase comes as average earnings figures are predicted to be released next week, confirming that the pension will be adjusted in line with this economic measure.

The triple lock ensures that the state pension rises each April by the highest of the following: inflation, the average wage increase, or 2.5%. As a result, men born after 1951 and women born after 1953 could see their full state pension amount reach approximately £12,000, following a £900 increase last year.

Pre-2016 retirees could also expect at least a £300 increase in their basic state pension, bringing their total to around £9,000 under the previous system.

The final decision regarding these pension increases will be made by pensions secretary Liz Kendall prior to the upcoming Budget next month. However, Chancellor Rachel Reeves has reiterated the government’s commitment to maintaining the triple lock until the end of the current parliamentary session.

This announcement comes shortly after the government faced backlash for its decision to cut winter fuel payments for most pensioners. While many will lose this payment, the overall increase in income from the pension rise is anticipated to be between £100 and £200 for these individuals.

Opponents of the government’s proposal argue that it fails to adequately support thousands of pensioner households living below the poverty line in rural areas who will be most affected by the loss of the winter fuel payment. Former pensions minister Sir Steve Webb expressed concern that approximately 1.6 million older individuals living in poverty may be stripped of their assistance.

In light of this controversy, the proposed pension increase could be viewed as an effort by the government to highlight its commitment to pensioners before an imminent vote.