DWP confirms ‘insulting’ 25p for older state pensioners under Andy Burnham

The DWP has confirmed there are ‘no plans’ to raise an ‘insulting’ state pension increase which hands older pensioners just 25p under Andy Burnham.

Under current state pension rules, older state pensioners are entitled to enhanced state pension payments when they reach 80, on top of some other allowances such as a boosted winter fuel payment.

While the increased winter fuel payment is worth £100 a year extra, the enhanced over 80s pension is less generous and successive governments have chosen not to increase it.

Listed as ‘Addition at age 80’ in the government’s benefits list, the amount has been set at 25p per week again for the current tax year, with no uplift for the benefit in the triple lock, despite increases for other now-defunct pension schemes such as Second State Pension.

Similar to the controversial £10 Christmas bonus, the 25p payment has never been adjusted for inflation since it was first introduced in 1971. At the time, pensions were £6 per week, so 25p represented a 4% boost. Today, this same 25p represents 0.13% of a basic state pensioner’s £184.90 maximum payments.

One state pensioner eligible for the 25p boost got in touch with the Express to raise awareness of the increase.

He said the DWP had sent him three separate letters to tell him he would be entitled to extra money – before revealing the full amount.

Timothy Pinner told the Express: “I was reading an article of yours re State Pension and you mentioned the age enhanced pension.

“I hear this spoken about in various media as though it was wonderful. I do not know if you are aware of the sum this enhanced payment is.

“Just prior to my eightieth birthday I received three separate letters from the DWP about this, and was quite looking forward to receiving it.

“When the first payment arrived I felt insulted.

It amounts to “Twenty Five PENCE per week. Which equates to One Pound a month or Thirteen Pounds a year. Big deal.

“I hope you will be able to highlight this as pensioners are continually being battered in the media.”

In a Research Briefing issued by Parliament in 2013, it explained: “The addition has never been increased. It was specifically excluded from the statutory index linking provisions of the Social Security Act 1975 (now replaced by section 150 of the Social Security Contributions and Benefits Act 1992). The Labour Government did float the idea of raising the age addition in their discussion document, ‘A Happier Old Age’ in 1978.

“In May 2012 there were some 3.2 million pensioners aged 80 and over. This would put the annual cost of the 25 pence age addition at some £41 million. If the 25 pence age addition had been increased by the Retail Prices Index (RPI) since its introduction in 1971, it would now be around £3.20 per week. The annual additional cost of increasing it to that amount would be around £500 million.

“Governments of both parties have generally resisted suggestions that the age addition should be increased, either arguing that greater priority should be given to maintaining or increasing the basic rate of benefit, or choosing to target additional resources on older pensioners by other means, for example, through means-tested benefits or lump sum payments, such as the Winter Fuel Payment.”

The DWP stressed to the Express that the amount, which is only available to older state pensioners who hit state pension age before April 2016, would be classed as taxable income should it be increased, and instead governments have focused on boosting other elements. It confirmed there are ‘no plans’ to change the 25p per week rule.

A DWP spokesperson said: “Supporting pensioners is a top priority and our commitment to the Triple Lock means millions of older people will see their State Pension rise by up to £2,100. The Age Addition will continue for those who qualified, and there are no plans to change the current arrangements.”