A recent petition advocating for significant changes to the UK State Pension system is drawing attention. The proposal seeks to eliminate the Basic State Pension and transition all pensioners to the New State Pension. Furthermore, it demands an increase in pension payments, ensuring that they align more closely with average earnings to offer retirees improved financial stability.
Currently, the disparity in pension payments is evident, with the full Basic State Pension set at £169.50 per week, whereas those on the New State Pension receive £221.20 per week. With millions of retirees still reliant on the lower Basic State Pension, campaigners argue that the government must address this inequality by increasing payments across the board.
Upcoming Pension Increases Under the Triple Lock System
The UK Government has announced an increase in State Pension payments effective April 7, 2025, as part of the Triple Lock system. This policy ensures that pension payments rise annually, following the highest among wage growth, inflation, or a minimum of 2.5%.
State Pension Increases for 2025/26
| Pension Type | Current Rate (2024/25) | New Rate (2025/26) | Increase |
|---|---|---|---|
| Full New State Pension | £221.20 per week | £230.25 per week | £9.05 per week |
| Four-weekly Payment (New State Pension) | £884.80 | £921 | £36.20 per month |
| Annual Payment (New State Pension) | £11,502 | £11,973 | £473.60 per year |
| Full Basic State Pension | £169.50 per week | £176.45 per week | £6.95 per week |
| Four-weekly Payment (Basic State Pension) | £678 | £705.80 | £27.80 per month |
| Annual Payment (Basic State Pension) | £8,814 | £9,175.40 | £361.40 per year |
Why Are Pensioners Demanding a Higher State Pension?
Many pensioners and advocacy groups are urging the government to increase pension payments, citing financial challenges and inequalities. Key reasons include:
1. Rising Cost of Living
The increase in essential expenses, such as food, energy bills, and healthcare, has put retirees under financial strain. Many struggle to afford basic necessities, prompting calls for higher pension payments to match inflation.
2. Disparity Between Pension Schemes
Introduced in 2016, the New State Pension provides significantly higher payments than the Basic State Pension. Pensioners on the old scheme receive nearly £54 less per week, a gap that continues to widen with annual increases.
3. Push for Pension Equality
Advocates argue that pensioners receiving the Basic State Pension should be compensated for the years they have received lower payments. Many believe that transitioning all pensioners to the New State Pension would create a fairer system.
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Details of the Petition for Pension Reform
A petition launched by Michael Thompson calls for the following changes:
- Abolition of the Basic State Pension and merging all retirees into the New State Pension scheme.
- A pension increase based on average earnings to ensure fair retirement income.
- Compensation for pensioners who have been disadvantaged by the old pension scheme since 2016.
So far, over 4,300 people have signed the petition. If it reaches 10,000 signatures, the government must issue a response. If it surpasses 100,000 signatures, it will be considered for debate in Parliament.
Government Stance on Pension Equality
In December, Labour MP Jessica Toale questioned DWP Minister Emma Reynolds on whether the government had considered equalizing the two pension schemes. The response stated:
“We are committed to supporting pensioners and ensuring they have dignity in retirement. However, no assessment has been made to equalize the Basic and New State Pension.”
The government also emphasized that direct comparisons between the two pension types are complicated due to individual National Insurance contributions affecting entitlements.
Future State Pension Increases Based on Triple Lock Forecasts
| Year | Predicted Increase |
| 2025/26 | 4.1% (Confirmed) |
| 2026/27 | 2.5% (Forecasted) |
| 2027/28 | 2.5% (Forecasted) |
| 2028/29 | 2.5% (Forecasted) |
| 2029/30 | 2.5% (Forecasted) |
While these increases provide some relief, campaigners argue they are insufficient given the rapidly rising cost of living.
Who Will Benefit from the Increases?
All pensioners will receive an increase, but those on the New State Pension will continue to receive higher payments than those on the Basic State Pension. Research by Royal London suggests that only 50% of retirees on the New State Pension receive the full amount, and approximately 150,000 pensioners receive less than £100 per week.
The DWP will send letters in March 2025 to inform pensioners of their new payment rates and encourage them to check eligibility for Pension Credit, which offers additional financial support.
How to Check Your Pension Entitlement
To check your pension forecast and determine eligibility for Pension Credit, visit:
- GOV.UK – State Pension Forecast
- GOV.UK – Pension Credit
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Frequently Asked Questions (FAQs)
1. Why is there a difference between the Basic and New State Pension?
The New State Pension was introduced in 2016 to simplify the pension system and provide a higher baseline payment. However, individuals who retired before this date remain on the Basic State Pension, which offers lower payments.
2. Will all pensioners receive the same amount if the petition succeeds?
If the government adopts the petition’s proposal, all retirees would transition to the New State Pension, ensuring a fairer system. However, this would require a major policy change.
3. How can pensioners increase their payments?
Pensioners may increase their payments by checking eligibility for Pension Credit, ensuring they have sufficient National Insurance contributions, and considering voluntary contributions if applicable.
4. When will the next pension increase take effect?
The next pension increase will take effect from April 7, 2025, under the Triple Lock system.
5. How can I support the petition?
You can sign the petition online and encourage others to support the cause to reach the required number of signatures for government action.
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