Age UK is calling for more financial assistance to be given to older people following the Chancellor’s Spring Budget on Wednesday. Jeremy Hunt outlined a plan focused on growing the economy and getting more disabled, older and unemployed people into work.
The Chancellor’s Spring Statement set out the “four pillars of our industrial strategy”, which are “enterprise, employment, education and everywhere” - but there was no additional support for pensioner households. The £2,500 Energy Price Guarantee is not rising until July, which is a win, but the monthly £66/£67 discounts which have been in place since October end this month.
There are now 12.6 million people claiming State Pension across Great Britain, some 9.7m on the Basic State Pension and 2.9m on the New State Pension. The Triple Lock means that those due the maximum New State Pension will receive £203.85 per week, some £815.40 each month (a four-weekly pay period), while those on the Basic State Pension will receive up to £156.20 each week (£624.80 each month), but the cost of living means that most of these payments will be used to cover housing and heating costs - and not everyone will be due the full payments and Age UK is “deeply concerned about how some older people will manage financially as they simply can't tighten their belts any further”.
It’s important to remember that the UK Government has already confirmed £37 billion in cost of living support which is due to start being paid to those on a low income this Spring.
State Pensioners on a low income could be due £900 in additional support through the means-tested cost of living payment, if they are in receipt of Pension Credit.
They will also receive the £300 pensioner cost of living payment which will be added to the winter 2023/24 Winter Fuel Payments - those start in November.
Commenting on the Budget, Caroline Abrahams, Charity Director at Age UK, said: "The standout measure for older people in the Budget was the thoroughly welcome decision to extend energy bill support to June, which Age UK and many others have been campaigning for.
“This allays older people's fears about their fuel costs going even higher, but of course it does not bring them down from their current unprecedented high, leaving many on low incomes in an extremely difficult position.
“When the Triple Lock kicks in this April it will be of enormous help, but we remain deeply concerned about how some older people will manage financially as they simply can't tighten their belts any further. They will need further support.”
Ms Abrahams highlighted the “pressing need for a lasting solution for the wild fluctuations in energy bills” that millions of households have seen over the last year, something she said makes it “impossible for any older person to budget on a meagre fixed income”.
But, the solution could come in the form of an energy social tariff.
She explained: “At Age UK we are convinced that the right approach is a properly funded energy social tariff and we are disappointed that there was no announcement formally committing the Government to this.
“People of all ages on low incomes desperately need the certainty an energy social tariff would bring.”
The change to prepayment energy meter costs from July will also help around 600,000 older households.
Commenting on the drive to get more older people back into work, Ms Abrahams said: “The measures the Chancellor announced to encourage more over-50s to stay in employment are welcome, but mostly small-scale.
“The roll-out of Mid Life MOTs on its own will not go far enough to helping people stay in work for another 15-20 years, it needs to be coupled with a greater investment in skills and retraining opportunities, more flexible working, as well as improved support for everyone looking for work, whether they are benefit claimants or economically inactive.”
The DWP has published a list of payment rates from April 10, 2023, on GOV.UK here. Below is everything you need to know about the increase to both sets of State Pension payments.
Full New State Pension
You are eligible for the New State Pension if you are:
- a man born on or after April 6, 1951
- a woman born on or after April 6, 1953
New State Pension payment rates
It's important to note that these are the maximum payments, how much someone gets depends on their National Insurance Contributions.
- Weekly rate: £203.85, an increase of £18.70 from £185.15
- Four-weekly rate: £815.40, an increase of £74.80 from £740.60
Basic State Pension (Category A or B)
You are eligible for the Basic State Pension if you are:
- a man born before April 6, 1951
- a woman born before April 6, 1953
Basic State Pension payment rates
It's important to note that these are the maximum payments, not everyone will be eligible for the full payment.
- Weekly rate: £156.20, an increase of £14.35 from £141.85
- Four-weekly rate: £624.80, an increase of £57.40 from £567.40
Widow’s Pension
- Standard rate: £139.10 (from £126.35)
For help and advice for yourself, a family member or a friend, visit the Age UK website here.
To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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