DWP urged to adopt State Pension ‘Triple Lock plus’ to keep Personal Allowance in-line with inflation

MPs have approved the Department for Work and Pensions’ (DWP) proposed plans to uprate State Pensions by 4.1 per cent and benefits by 1.7 per cent from April 7. Minister for Social Security and Disabilities, Sir Stephen Timms, told Parliament on Tuesday the uprating will see a £6.9 billion increase in UK Government welfare spending over the 2025/26 financial year.

The DWP Minister said: “The Government’s commitment to the Triple Lock means the Basic and full rate of the New State Pension will be uprated by the highest of the growth in earnings or prices or 2.5%.” He added: “From April this year the Basic State Pension will increase from £169.50 per week to £176.45, and the full rate of the New State Pension will increase from £221.20 to £230.25.”

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Sir Stephen also said the Labour Government is “fully committed” to maintaining the pensions Triple Lock adding there is “some confusion currently about the position” from the Conservatives.

Conservative MP Luke Evans (Hinckley and Bosworth) asked Sir Stephen if the UK Government would adopt a policy pushed by the Tories at the last election to introduce the ‘Triple Lock Plus’, which was designed to ensure the Personal Allowance for income tax would rise in future in line with increases in the main rate of the New State Pension.

Sir Stephen replied: “We don’t have any plans to do what he suggests.”

The UK Government recently announced the Personal Allowance will be frozen at £12,570 until the start of the 2028/29 financial year.

State Pension payments 2025/26

The DWP has published the full list of State Pension and benefit uprated payments on GOV.UK here, which also includes additional elements such as the deferred rates, which are rising by 1.7 per cent (September Consumer Price Index inflation rate).

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)

Pension Credit

On Pension Credit, Sir Stephen said the standard minimum guarantee would increase by 4.1 per cent from £218.15 to £227.10 per week for single pensioners and from £332.95 to £346.60 per week for couples.

Shadow work and pensions minister Danny Kruger said the Conservatives supported the move to uprate State Pensions although he faced questions over his party’s stance on the Triple Lock.

Last month, Conservative Party leader Kemi Badenoch suggested she would look at means-testing when asked about the future of the Triple Lock.

During a phone-in on LBC, Mrs Badenoch was asked whether she would “look at” the Triple Lock, to which she replied: “We’re going to look at means-testing. Means-testing is something which we don’t do properly here.”

Responding to Sir Stephen, Mr Kruger said: “I think he’s misunderstood or our leader’s position has clearly been misquoted.

“We’re not looking at cancelling the Triple Lock, it’s his colleague the new Pensions Minister (Torsten Bell) who has been very clearly quoted saying that the Triple Lock is a silly system and indefensible.”

Asked if he agreed with shadow chancellor Mel Stride that the Triple Lock is “unsustainable”, Mr Kruger replied: “There are clearly questions on the long-term sustainability of our pensions system and National Insurance fund, but I think he was talking about the very long-term rather than the immediate situation that we’re in.

“There’s no intention to review the Triple Lock at this stage on our benches anyway.”

MPs also approved motions to set various National Insurance thresholds and uprate Child Benefit and Guardian’s Allowance.

Treasury Minister James Murray said: “These regulations fix most of the rates and thresholds for National Insurance contributions, which they cover at their 2024/25 levels for the 2025/26 tax year.”

He added: “These regulations also make provision for a Treasury grant, they extend the veterans employers’ National Insurance contributions relief and increase the rates of Child Benefit and Guardians Allowance in line with prices.”