Chancellor Rachel Reeves will announce tomorrow the rate of the full new state pension will increase to just over £240 a week
State pensioners born before 1953 will be denied £2,920 due to ‘two-tier’ rule
State pensioners on the Old, Basic State Pension from the Department for Work and Pensions face losing THOUSANDS – due to a two-tier system.
Labour Party Chancellor Rachel Reeves will announce tomorrow the rate of the full new state pension will increase to just over £240 a week from next April, while the full basic state pension is expected to rise by around an extra £440 a year. This is an increase worth over £550 a year, an extra £120 compared to what it would have been if it had been uprated only by inflation. Right now, the full new state pension is £230.25 a week, or £11,973 per year.
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A 4.7 per cent increase – which earnings growth was at – means £241.05 a week, giving £561 more per year, totalling about £12,534 for those who get a full new state pension.
But older retirees, born before 1951 if they’re men and 1953 if they’re women, will see payments rise from £176.45 a week to £184.90. That means a £9,614 payment – some £2,920 shy of what younger pensioners will be handed.
Previously, ex-DWP workers like Sandra Wrench have said the Basic and New state pension rates create a “two-tier system”.
Mrs Wrench warned: “With The Triple Lock relating to the basic rates of the State Pension only, this has created a two-tier uprating system for those who reached State Pension Age before April 2016 where the 100% rate of the Old/Basic State Pension is currently £176.45 a week and those who reached retirement age after April 2016 where the 100% rate of the New State Pension is higher at £230.25.”
Ms Reeves said: “Whether it’s our commitment to the triple lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve.
“At the Budget this week I will set out how we will take the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living.”
Kemi Badenoch, meanwhile, will use a pre-Budget speech to accuse the Government of killing off Christmas jobs and other seasonal work with the new Employment Rights Bill, which makes it harder for businesses to sack staff or reduce their hours.
She will tell the CBI business group: “If a university undergrad chooses to get a Christmas job and works 40 hours a week in the three weeks before December, they then have the right to those same hours in January, February and March.
“Great. Except there’s no demand then, and revenue falls off a cliff. A measure designed to ensure employment in January will effectively mean firms don’t hire in December – and everyone loses.”