Saturday, 29 March 2025
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EuropePolitics

State Pension Set for £400 Annual Increase Amid Winter Fuel Allowance Cuts Debate

  • UK state pension could rise by £400 annually, potentially reaching £12,000 by 2025/26.
  • Labour’s Rachel Reeves criticized for plans to means-test winter fuel allowance.
  • Pre-2016 retirees may also see a £300 yearly increase in the secondary state pension.

The UK state pension could see a significant rise of over £400 annually as part of Labour’s continued commitment to the triple lock policy.

Amid these changes, Chancellor Rachel Reeves has faced criticism for plans to means-test the winter fuel allowance, limiting it to pensioners receiving pension credits.

Labour Faces Criticism Over Winter Fuel Allowance Cuts as State Pension Rises Loom

The Labour government is preparing to implement a significant increase in the state pension, with a rise of over £400 per year anticipated. This would bring the full state pension to approximately £12,000 annually by 2025/26, driven by the triple lock policy, which ensures pensions grow in line with the highest measure of inflation, wage growth, or a fixed 2.5%.

The policy shift has sparked criticism from various corners, particularly regarding Labour Chancellor Rachel Reeves’ proposal to means-test the winter fuel allowance. This change would restrict the benefit to pensioners who receive pension credits, potentially leaving others without sufficient financial support for heating during winter. Critics argue that this move could deepen the financial strain on many elderly people.

Despite the backlash, Rachel Reeves reaffirmed Labour’s commitment to the triple lock policy until the end of this Parliament. This move is seen as an attempt to balance rising pension payments with other financial pressures on the government. The plan to means-test the winter fuel allowance comes as part of broader efforts to manage the costs associated with social benefits.

Retirees under the pre-2016 system, who are eligible for the secondary state pension, are also expected to benefit from the upcoming changes. These pensioners could see their annual payments rise by £300, bringing their total to £9,000 by 2025/26. The final decisions on pension increases will be determined ahead of the October budget by Pensions Minister Liz Kendall.

As Labour faces pressure over winter fuel allowance cuts, the anticipated rise in state pensions is aimed at addressing pensioners’ financial needs while balancing broader economic constraints.

“The plan to limit the winter fuel allowance to those receiving pension credits has sparked criticism, with concerns that many pensioners could

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