Conservative leader Kemi Badenoch suggests means testing the state pension triple-lock, sparking debate.
London: Kemi Badenoch, the Conservative leader, has stirred up a discussion about pensions. She suggested that the pension triple-lock should be means tested. This means checking people’s finances to see if they qualify for the pension based on their wealth.
During a recent LBC interview, Badenoch mentioned that the Conservatives might consider means testing. Currently, the triple-lock applies to all pensioners, no matter their income or savings. This change could affect how much some pensioners receive.
Badenoch pointed out that means testing isn’t done well in the UK. She believes we need to address why the country isn’t making as much money as before. She emphasized the importance of leaving something for future generations.
MPs have asked Badenoch for more details about her comments. However, she hasn’t responded yet. This is a shift from former Prime Minister Rishi Sunak’s promise to enhance the triple-lock system.
What is Means Testing?
Means testing checks a person’s finances to see if they qualify for certain payments. It aims to help those with less wealth receive more support. Recently, Labour faced criticism for means testing winter fuel payments, limiting benefits to low-income pensioners.
What is the State Pension Triple Lock?
The triple-lock, introduced in 2011, ensures the state pension increases each year. It rises by the highest of three measures: inflation, average wage growth, or 2.5%. In 2024, the pension increased by 8.5% due to inflation.
This April, it will rise by 4.1%, matching wage growth. The triple-lock aims to protect pensioners from rising prices and maintain their spending power. However, it has faced criticism for its long-term sustainability, costing the government around £124.3 billion in 2023/24.
What is the State Pension Age in the UK?
The current state pension age in the UK is 66. This is when you can start receiving your state pension. Before that, you can only access personal pensions, usually not before age 55.
The state pension age will gradually rise to 67 starting May 6, 2026. For those born on April 6, 1960, it will be 66 and 1 month, increasing for each subsequent birth month until it reaches 67 for anyone born on or after March 6, 1961.
