State pension payments go up each April
A senior Government minister has provided an update regarding a change to the qualifying rules for the state pension. DWP minister Torsten Bell addressed the Work and Pensions Committee about upcoming changes to the qualifying criteria for the DWP benefit.
He was questioned on various matters relating to people preparing financially for retirement, and how the state pension fits into people’s later-life plans. One topic raised was the approaching rise in the state pension age. You can presently claim your state pension upon reaching 66. However, the eligibility age is rising from April 2026, climbing gradually to reach 67 by April 2028.
Mr Bell was asked about how raising the eligibility age might affect “health and frailty”. The committee also asked what guidance the Government had obtained from senior medical advisers on this matter.
The minister responded to say that health considerations “will absolutely be part of how we act” regarding pension decisions. However, on the particular issue of the health implications of raising the state pension age, he said: “The decision to increase it was obviously taken by the last Government, and the acceleration of it was also put in place by the last Government, so you will have to ask them who they spoke to at the time.
“They did publish an impact assessment along with the 2014 Act, but it is not for me to talk about. There are other people representing parties in the room who were involved in that; you could ask them who they spoke to.”
The rise from 66 to 67 was initially scheduled to take place by 2036, but this timeline was accelerated by eight years through the 2014 Act, due to rising life expectancy. Legislation is also in place for the state pension age to increase once more from 67 to 68, between 2044 and 2046.
State pension early access
Mr Bell was also asked for his views on allowing early access to the state pension. He responded: “It is a very good question, and I think we should take that seriously.” The minister acknowledged there are certain “inequality challenges” to consider when examining early access provisions for particular groups.
He explained to the group of MPs: “You want there to be a state that is supporting people who are too ill to work, whether they are 25, 45 or 66. That is important to have in mind.
“You want a system that means people are getting help. We have chosen, for good reasons, to have a big difference in the level of income support provided to people over the state pension age and under it, in big-picture terms, because the work incentive issues are different and all the rest.”
Mr Bell also discussed the concept of early access for people with a terminal illness. He said: “People rightly raise challenges around how any of us would cope with the challenges of terminal illness, either for ourselves or in our family. I am sure you have heard versions of that.
“Some people’s response to that is to allow early access to the state pension at particular ages-65 or 66-but there are 45-year-olds with terminal illnesses.”
The minister also noted that a crucial factor when considering early access to the benefit involves examining the “characteristics” of different individuals.
State pension payments are set to rise by 4.8 per cent this April under the triple lock mechanism. This policy guarantees payment rates increase each April, aligned with whichever is highest: 2.5 per cent, wage growth or inflation.
