State pension payments go up each April
A top Government minister has provided an update regarding a major change to the state pension. DWP minister Torsten Bell addressed the Work and Pensions Committee concerning upcoming alterations to the eligibility criteria for the DWP benefit.
He faced questions on various matters relating to people preparing financially for retirement, and how the state pension fits into people’s plans for their later years. One topic raised concerned the approaching rise in the state pension age. Currently, you can claim your state pension upon reaching 66 years of age. Nevertheless, the qualifying age is rising from April 2026, increasing progressively until it reaches 67 by April 2028. Mr Bell was questioned about how raising the eligibility age might affect “health and frailty”.
The committee also wanted to know what guidance the Government had obtained from senior medical advisers on this matter. Mr Bell responded that health considerations “will absolutely be part of how we act” regarding pension-related decisions.
Yet on the particular question of the health consequences of raising the state pension age, he said: “The decision to increase it was obviously taken by the last Government, and the acceleration of it was also put in place by the last Government, so you will have to ask them who they spoke to at the time.
“They did publish an impact assessment along with the 2014 Act, but it is not for me to talk about. There are other people representing parties in the room who were involved in that; you could ask them who they spoke to.”
The rise from 66 to 67 was initially scheduled to take place by 2036, but this timeline was accelerated by eight years through the 2014 Act, reflecting rising life expectancy. Legislation is also in place for the state pension age to climb once more from 67 to 68, between 2044 and 2046.
Early access to the state pension
Mr Bell was also questioned about his views on allowing early access to the state pension. He responded: “It is a very good question, and I think we should take that seriously.” The minister acknowledged there are certain “inequality challenges” to consider when looking at early access provision for particular groups.
He explained to the MPs: “You want there to be a state that is supporting people who are too ill to work, whether they are 25, 45 or 66. That is important to have in mind.
“You want a system that means people are getting help. We have chosen, for good reasons, to have a big difference in the level of income support provided to people over the state pension age and under it, in big-picture terms, because the work incentive issues are different and all the rest.”
Mr Bell also had some words to say about the idea of early access for people with a terminal diagnosis. He said: “People rightly raise challenges around how any of us would cope with the challenges of terminal illness, either for ourselves or in our family. I am sure you have heard versions of that.
“Some people’s response to that is to allow early access to the state pension at particular ages-65 or 66-but there are 45-year-olds with terminal illnesses.” The minister also noted that a crucial factor when considering early access to the benefit is to look at the “characteristics” of different people.
State pension payments are set to rise by 4.8 per cent this April under the triple lock mechanism. This policy guarantees that payment rates increase each April, aligned with whichever is highest: 2.5 per cent, the growth in average earnings or inflation.
