State Retirement Pensions

Department for Work and Pensions written question – answered on 12th January 2016.

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Photo of Louise Haigh Louise Haigh Shadow Minister (Cabinet Office)

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the cost of moving pensioners who receive less than £156.65 per week onto the new state pension from April 2016.

Photo of Louise Haigh Louise Haigh Shadow Minister (Cabinet Office)

To ask the Secretary of State for Work and Pensions, what estimate he has made of the number of pensioners who receive a lower weekly pension payment than the new state pension of £156.65.

Photo of Louise Haigh Louise Haigh Shadow Minister (Cabinet Office)

To ask the Secretary of State for Work and Pensions, what assessment he has made of the costs and benefits of compensating people on the current state pension who will not reach the level of the new state pension.

Photo of Justin Tomlinson Justin Tomlinson Parliamentary Under-Secretary of State (Department for Work and Pensions) (Disabled People)

The new State Pension reforms have been carefully balanced to ensure that the new system will not cost more than the existing system. Therefore, extending the new system rules to existing pensioners (while maintaining cost neutrality) would see many pensioners facing a reduction in their state pension entitlement.

We have no current assessments of the costs of extending the new State Pension reforms to existing pensioners. Information from 2011 is available here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/223172/cost_140_a_week_state_pension.pdf

A comparison between what current pensioners receive and £155.65 a week is not appropriate because the existing State Pension system is made up of multiple components.

Data regarding the total weekly amount of benefit, by category of pension, for the state pension caseload can be found here:

http://tabulation-tool.dwp.gov.uk/100pc/sp/amtgp/cat/a_carate_r_amtgp_c_cat_may15.html

The new State Pension introduces a fundamental simplification of the state pension system and we have no plans to extend the new State Pension reforms to existing pensioners. The Guarantee Credit in Pension Credit will continue to provide a safety net for existing and new pensioners.

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Annotations

George Morley
Posted on 13 Jan 2016 5:37 pm (Report this annotation)

Justin Tomlinson, if you read the content of https://www.gov.uk/government/uploads/system/uploads/attachm... - you will see that it says : "The amount of basic State Pension someone receives depends on how many qualifying years of National Insurance they have built up. " But as usual it does not mention the freezing policy which affects so many current pensioners and will do the same to so many others as it is further imposed in the Pensions Act by section 20 from April 2016.
Whilst it may be very convenient for you to leave this problem out of any reply it is also deceitful and lacks the probity expected from Members of Parliament by the electorate as even if the truth hurts it should be said.