DWP issues statement on concerns over means-testing State Pension payments

The Department for Work and Pensions (DWP) has confirmed that the Labour Government has no intention of means-testing the State Pension. The Secretary of State for Work and Pensions, Pat McFadden, made these remarks in response to a query from Labour backbencher Catherine Fookes during DWP questions in Parliament on Monday.

The Monmouthshire MP said: "At the Conservative party conference, the shadow Chief Secretary to the Treasury called for the State Pension to be means-tested. This has caused deep concern to pensioners in Monmouthshire who have worked hard all their lives and built up modest savings. Under the Conservative party's plans, they would risk losing their state pension. Will the Secretary of State confirm that, under this Labour Government, the State Pension will remain available to all?"

In response, Mr McFadden said: "I am happy to say that what (Ms Fookes) says about means-testing is not the Government's policy, but can the Conservatives confirm whether it is theirs? The shadow Chief Secretary let the cat out of the bag. Can she (Helen Whately MP) confirm that this is not her policy, or is it that her leader still sticks to the position she set out earlier this year when she said: 'We are going to look at means-testing'. Are they still looking at it, or are they not?".

Conservative shadow work and pensions minister Helen Whately deflected the question and focused on Labour's handling of welfare cuts, reports the Daily Record.

She said: "I am sure that we all remember the fiasco before the summer when the Government tried to make welfare savings and ended up legislating for welfare spending. Since then, the Prime Minister has said that there is a 'clear moral case' for welfare cuts, and the Chancellor has said that she 'can't leave welfare untouched'. Does the Secretary of State agree?"

The DWP chief replied: "I notice that (Ms Whately) did not want to clarify the position on means-testing the State Pension. Welfare reform is happening all the time. We passed important changes to the Universal Credit system that were voted through by the House and, as I said, we are putting in place important employment support to help not only long-term sick and disabled people but young people into work through many of the policies that I have talked about today."

Millions of pensioners are set for a substantial State Pension increase next April following the completion of the Triple Lock calculation by the Office for National Statistics (ONS) last week. The Consumer Price Index (CPI) figure for September stood at 3.8 per cent, meaning the New and Basic State Pensions will increase according to the earnings growth measure of 4.8 per cent.

The Triple Lock ensures the New and Basic State Pensions rise annually in line with whichever proves highest among average annual earnings growth from May to July (4.8%), CPI inflation rate in the year to September (3.8%), or 2.5 per cent. The Additional State Pension elements and deferred State Pensions increase annually with the September CPI figure.

A 4.8 per cent rise will result in those on the full New State Pension receiving £241.30 per week, while those on the maximum Basic State Pension would receive £184.90 per week. It's crucial to note that the amount of State Pension someone receives is dependent on their National Insurance contributions. To receive the full New State Pension you need approximately 35 years' worth, but this may vary if you were 'contracted out'.

The full New State Pension will see an increase of about £574 from April 2026 - raising it to £12,547 per year. The uprating leaves just £36 before the Personal Allowance income threshold of £12,570 is exceeded which would result in more pensioners paying tax in retirement.

Earlier this year, the Labour Government confirmed that the Personal Allowance will remain frozen at £12,570 until April 2028. Chancellor Rachel Reeves will confirm the annual uprating at the Autumn Budget on November 26. An uprating of 4.8 per cent on the current State Pension would result in people receiving the following amounts.

Full New State Pension

• Weekly: £241.30 (from £230.25)
• Four-weekly pay period: £965.20
• Annual amount: £12,547

Full Basic State Pension

• Weekly: £184.90 (from £176.45)
• Four-weekly pay period: £739.60
• Annual amount: £9,614