Older pensioners set to get £2,500 less despite triple lock rise

State pension: Carole Malone criticises rate for OAPs

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

From April 2023 onwards, Britons will secure their biggest ever rise to the state pension in line with the September 2022 inflation figure. This is due to the return of the triple lock, after its temporary suspension this year.

However, it is important to note the state pension does not provide a flat-rate increase for all in terms of pounds and pence.

What a person gets typically hinges on their National Insurance contributions, but perhaps more importantly, when they retire.

A two-tier state pension system separates retired individuals into groups depending on their age and point of retirement.

The new state pension is available for men born on or after April 6, 1951, and women born on or after April 6, 1953.

The full rate of the new state pension will rise from £185.15 per week, at present, to £203.85 per week.

However, those who are on the older, basic state pension are set to get less.

These individuals will have retired before April 6, 2016. The basic state pension is for men born before April 6, 1951 and women born before April 6, 1953.

The full basic state pension will rise from a value of £141.85 per week, to £156.20 weekly from April onwards. 

Widow could be eligible for £3,500 boost [VIDEO]
Hours left to secure pension ‘bumper boost’ [INSIGHT]
State pension age to rise with triple lock at risk in future [UPDATE]

Across the course of a year, it means the basic state pension will deliver £2,479 less income.

Although both state pensions will increase by the same percentage amount each year, the basic state pension is working from a lower starting point.

Consequently, some are dissatisfied with the difference, calling for the matter to be reassessed going forward.

Recently, a petition has called for “pension parity” for those who are eligible for the older, basic state pension scheme.

Published on the Parliament website, the petition argues it is an “absolute scandal” there is a monetary gap between the old and new state pensions.

The petition author wrote: “I missed the new pension by 14 days costing me £2.5k a year. This disparity has led to pauper pensioners.

“How can we live on £2.5k a year less, just because we were born before April 6, 51/53 than someone born later? The cost of living is the same for all – not because of where you were born.

“Many affected by this really could do with the extra financial boost this will provide.”

What is happening where you live? Find out by adding your postcode or visit InYourArea

At present, the petition has garnered some 730 signatures, meaning it has less than the 10,000 needed for an official Government response.

At 100,000 signatures any petition in the website will be considered for debate in Parliament.

However, only one day remains to reach this target as the petition deadline is laid out as February 1, 2023.

The DWP has explained the full yearly amount of the basic state pension is £2,300 higher than in 2010.

It has said the “vast majority” of those in receipt of it, also get an occupational or private pension, or the Additional state pension – and many will receive a combination of the two. 

Source: Read Full Article