Commons Sense

House of Commons · Westminster Hall

State Pension

12 December 2022 · 2 other contributors · 7,983 words

Opened by Marsha de Cordova Lab Battersea

Responding minister: Laura Trott

Benefits & Welfare

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Marsha de Cordova raised concerns about state pension in Westminster Hall. A government minister responded.

Key points

  • The current full state pension is 185.15 per week and the basic state pension is 141.85.
  • The petition calls for a 380 weekly state pension to address the cost of living crisis.
  • The Government disagrees with increasing the state pension to 380 a week and lowering the retirement age to 60.

Key requests to Government

The Government should consider increasing the state pension or introducing a minimum pension income guarantee. They need to address pensioner poverty by committing to additional financial support targeted at those in most need and delivering a take-up campaign for Pension Credit to identify eligible pensioners. The Minister should commit to addressing the issues surrounding pension credit and the energy price guarantee, explain why so many eligible pensioners are not claiming their benefits, and explore ways to better reach hard-to-reach groups such as those who do not have English as a first language. The Government must also address delays in passing on payments for heating costs to tenants.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Marsha de Cordova Lab Battersea

The current full state pension is £185.15 per week and the basic state pension is £141.85, while the petition calls for a £380 weekly state pension. The cost of living crisis has pushed an additional 200,000 elderly people into poverty in the last year. Pensioners face challenges such as cuts to public services, rising food and fuel bills, and a higher eligibility age for the state pension which has increased hardship for many. Pensioners are facing the worst cost of living crisis in over four decades, with inflation hitting over 10%, and staple food prices rising far more than that. The cost of energy has also increased dramatically. Despite raising the state pension in line with the triple lock being a manifesto pledge, the Government repeatedly failed to meet this commitment, leading to delays and uncertainty for pensioners.

Other contributors (2)
  • Beth Winter Lab Cynon Valley

    Pensioner poverty is significant in the UK, with over 2 million older people living in relative poverty. Beth Winter highlights the impact of pensioner poverty on women and vulnerable groups, emphasizing the need for compensation for WASPI women and former miners. She calls for an increase in state pensions to £380 a week, aligning with international standards, and advocates for addressing unclaimed pension credit worth about £1.7 billion.

  • David Linden SNP Glasgow East

    Noted the financial inadequacies of the state pension and the impact of austerity on pensioner poverty. Emphasised the need for a fairer pensions system, highlighting the low take-up of pension credit, which costs each pensioner £520 annually during the cost-of-living crisis. Cited food bank data showing that many people are using food banks for the first time due to rising costs. Asked the Minister about the amount spent on billboard campaigns and radio advertising to encourage pensioners to take part, similar to those used for the levelling-up campaign.

Government Response

Laura Trott

It is a pleasure to serve under your chairmanship, Sir Robert. I thank all hon. Members for their valuable contributions, and the hon. Member for Battersea (Marsha De Cordova) for opening the debate. The Government disagree with the petition's proposed approach of increasing the state pension to £380 a week and lowering the retirement age to 60. A direct comparison between the national living wage and the state pension cannot be drawn, as the latter is funded through different means and targets different demographics. An increase in the state pension to £380 per week would cost up to £251 billion annually, compared to the current £110 billion forecasted for 2022-23. The Government are committed to ensuring that the state pension provides a foundation for retirement income and have raised the full yearly amount of the basic state pension by over £2,300 since 2010. They also plan to apply the triple lock this year, increasing the state pension by more than double its value in 2010. Pension credit is highlighted as vital support for topping up retirement incomes and providing additional financial assistance through means-tested benefits. The Government have taken direct action during the pandemic and now with rising costs, including a £650 cost of living payment to those on pension credit and a £400 reduction on energy bills. Automatic enrolment has boosted private savings by more than £33 billion in real terms since 2012, and reforms aim to enable people to start saving earlier. The Government maintain there are no plans to reverse changes to the state pension age due to affordability concerns and fairness between generations.

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