State pension blow as ‘no plans’ to introduce £200 per week minimum sum for all | Personal Finance | Finance
A petition started by Silver Voices a few weeks ago aimed to set a minimum pension guarantee (MPG) for all pensioners. It argued people should get at least £200 “irrespective of gender, martial status or contribution record”.
If successful, this would have altered the current system which requires Britons to have a set number of qualifying years on their National Insurance record to unlock a state pension sum, with even more required for the full amount.
The petition quickly gained traction on the official Parliament website, with thousands of signatories attempting to catch the Government’s attention on the matter.
Within days, the petition exceeded the 10,000 signatures required for an official Government response.
However, those in support of the idea have faced a major setback with the Government seemingly refusing the matter outright.
READ MORE: ‘Say yes!’ Married couples could slash their tax bill by £1,242
For this reason, the DWP added: “This proposal would add significant costs and make the system unsustainable and create additional burdens on the working age population.”
Addressing the cost of living concerns raised by the original petition, the Government states it understands pressures faced by Britons.
It pointed individuals towards the £650 cost of living payment it is issuing in the form of two lump sums this year.
Pensioner households are also set to receive a one-off payment of £300 if they are eligible for a Winter Fuel Payment.
READ MORE: Attendance Allowance: Medical conditions that are eligible to claim
The official response also stated it is “difficult to make meaningful comparisons between state pension schemes in different countries”.
This appears to directly address the claim made in the original petition the UK “provides the worst state pension in the developed world”.
The DWP added: “There are many factors to take into account such as different tax systems, cost of living, access to occupational pensions and availability of other social security benefits, Health and Social Care systems.
“This is as well as the provision of services and goods free to pensioners or at concessionary rates.
“However, OECD rankings show that, due to Government reforms including the new state pension and Automatic Enrolment, the UK’s pensions system will provide future workers with income replacement rates which are comparable to the OECD average and higher than countries such as Switzerland, Norway, and Germany.”
Dennis Reed, Director at Silver Voices, previously argued the “time is right” for an introduction of the state pension minimum guarantee.
He told Express.co.uk: “We think it is a reasonable response to the current crisis.
“The only opposition I am getting is from a smaller number of older people who feel that £200 is not enough!”
What do you think about the state pension sum? Share your comments below or email [email protected].
