New DWP update on future plans to means-test State Pension payments

Following on from the Labour Government’s announcement that over 10 million older people who are not receiving income-related benefits such as Pension Credit will no longer qualify for Winter Fuel Payments of up to £300, speculation has been growing that the State Pension could be means-tested in the future. However, a former Department for Work and Pensions (DWP) employee with over 42 years experience dealing with State Pensions and benefits has received an official response from the Pensions Minister clarifying the Government’s stance on the subject.

Sandra Wrench from Bedford wrote a nine-page letter to the DWP in July - submitted through her local MP, Mohammad Yasin - expressing her concern over the prospect of means-testing the State Pension and explained why the UK Government would face “great difficulty” implementing such a massive policy change due to the complexity of the contributory benefit. Responding to the ex-DWP employee’s concerns last month, Pensions Minister Emma Reynolds confirmed that the UK Government “have no plans” to means-test the State Pension.

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In a letter to Mohammad Yasin, Ms Reynolds wrote: “I am sorry that speculation and rumour has caused Mrs Wrench undue concern. Ensuring a better deal for current and future pensioners is a priority for this Government.

“I can confirm that the State Pension is not subject to a means-test, and we have no plans to change this.”

The 72-year-old wrote the letter with the aim of getting a response that would give older people peace of mind about their State Pension, which for some, is their only source of income. Sandra also wrote to them in August after Chancellor Rachel Reeves announced that universal Winter Fuel Payments would be scrapped for 12.7 million pensioners in favour of a means-tested approach.

She told the Daily Record: “You need some kind of financial security in later life, so having a State Pension which is not means-tested gives people that security, which is why I feel that it is such an important issue.

“It is easy for some people to say that you can claim a means-tested benefit, such as Pension Credit, but as you get older you may not have the mental energy levels to cope with completing a 23-page form, including listing all your assets, and notifying DWP of any change.”

Chancellor Rachel Reeves confirmed that State Pension payments will rise by the earnings growth measure of the Triple Lock policy during the Autumn Budget on October 30. This means millions of older people claiming the New and Basic State Pension will see payments rise by 4.1 per cent from next April.

Ms Reeves also confirmed that the Pension Credit earnings threshold will rise by 4.1 per cent from the current £11,400 to £11,850 next April. This increase takes into account the State Pension uprating which could see those on the full, New State Pension receive an uplift of up to £470 over the 2025/26 financial year.

State Pension payments 2025/26

It’s important to be aware that additional State Pension elements will increase by the September CPI figure of 1.7 per cent.

Full New State Pension

• Weekly payment: £230.25 (from £221..20)

• Four-weekly payment: £921 (from £884.80)

• Annual amount: £11,973 (from £11,502)

Full Basic State Pension

• Weekly payment: £176.45 (from £169.50)

• Four-weekly payment: £705.80 (from £678)

• Annual amount: £9,175 (from £8,814)