Lots of constituents have contacted me about support for pensioners.

Regarding the tax-free personal allowance, I note that the Johnson Government froze the current thresholds in 2021, and the Sunak Government did so again until 2028 after the negative impact of the Truss Government’s mini-Budget. I am pleased to confirm that the new Government has decided that there will be no extension of this freeze beyond the decisions made by the previous Government. From April 2028, personal tax thresholds will be uprated in line with inflation once again.

Unfortunately, given the pressures faced by the public finances, including the £22 billion blackhole left by unfunded spending commitments made by the last Government, the new Government has had to make tough choices to bring the public finances under control, including providing Winter Fuel Payments only to pensioners receiving Pension Credit. This was not a decision we wanted to make or indeed one that we expected to have to make, but I believe that the responsible thing to do is to fix our economy and bring back economic stability.

Nevertheless, the Labour government is committed to supporting our pensioners. We will protect the triple lock on pensions over the lifetime of this parliament. This guarantees that the State Pension increases each year in line with the highest of either inflation, average earnings or 2.5%. I am pleased to confirm that both the Basic and New State Pension along with Pension Credit, will be uprated by 4.1% in 2025-26. This means that over 12 million pensioners will gain up to £470 next year, up to £275 more than an uprating simply in line with inflation.

Pension Credit continues to provide a safety net for the poorest pensioners and those with additional needs, such as those with a severe disability, caring responsibility, responsibility for a child or certain housing costs. Thus, I support the steps the Government is taking to raise awareness of Pension Credit and boost its take-up.

Thank you once again for contacting me about these important issues.

Best wishes

Rt Hon Hilary Benn
MP for Leeds South
Secretary of State for Northern Ireland