Dear constituent,
Thank you for contacting me about support for pensioners.
I recognise the contribution pensioners have made and continue to make, to British society. We must ensure that everyone has security in their retirement. Several steps have been taken to support older people.
I welcome that the State Pension was increased by 10.1 per cent from April 2023, in line with the inflation figures for September 2022. Indeed, I also welcome that the Government will maintain the Triple Lock in full for 2024/25. In April 2024, the basic State Pension, new State Pension and Pension Credit standard minimum guarantee will be uprated in line with average earnings growth for September 2023- 8.5 per cent.
Alongside this, members of Defined Contribution pension schemes are no longer forced to buy an annuity if they do not want one, and the punitive 55 per cent tax rate for those drawing down more than their tax-free lump sum has been scrapped.
Moreover, as announced at the Spring Budget 2023, the Government has raised the Annual Allowance - the annual limit on tax-relieved pension savings - from £40,000 to £60,000 from April 2023. The Government also removed the Lifetime Allowance charge, the maximum amount of tax-relieved pension savings an individual can have, to remove the disincentives to working longer.
Additionally, older people can benefit from Winter Fuel Payments, free bus passes, and free prescriptions. Cold Weather Payments are also available, and the Warm Home Discount is payable to pensioners in receipt of Pension Credit Guarantee Credit and provides a £150 rebate on their energy bills.
Last year, I tabled a Written Parliamentary Question about the use of a social tariff as part of energy market reforms and you can read the Minister's response here: https://questions-statements.parliament.uk/written-questions/detail/202…. The Government is working with consumer groups and industry to consider the best approach to consumer protection in energy markets, as part of wider retail market reforms. I understand that various options, including social tariffs, are under consideration. As set out in the Energy Security Strategy, the Government will continue to ensure that energy is affordable for all consumers.
I hope this reassures you that support is being offered to pensioners who have worked hard and saved.
Thank you again for taking the time to contact me.
Yours sincerely,
