Income boost for millions of pensioners and working people

Millions of pensioners will receive as much as £470 more a year added to their State Pension from today, thanks to the government’s’ ‘ironclad commitment’ to the pensions Triple Lock throughout this parliament

  • Millions of pensioners to receive up to an additional £470 in their State Pension this year.
  • Triple Lock means those receiving the State Pension are set to increase by up to £1,900 over the term of this Parliament.
  • Over five million households receiving working-age benefits such as Universal Credit will also see an average boost of £150, with Plan for Change putting more money in working people’s pockets.

This comes alongside the annual uprating of working-age benefits such as Universal Credit, with people receiving those set to receive an extra £150 on average over the course of this year – an increase set to benefit 5.7 million working-age households. Disability benefits such as Disability Living Allowance, Carers Allowance and child benefits are also set to increase by the same amount.

The Triple Lock – which guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5% – means the basic and new State Pensions are increasing by 4.1%, well above the current level of inflation.

These changes come alongside increases to the National Minimum Wage and National Living Wage, benefiting three million eligible workers across the country. With the National Living Wage increasing to £12.21 for those aged 21 and over and the National Minimum Wage for those aged 18 to 20 seeing a record increase to £10 an hour, three million workers will benefit, with eligible full-time workers set to see an increase in their annual salary of £1,400.

This support is securing Britain’s future through the Plan for Change, which is delivering security and renewal by kick-starting economic growth to put more money in working people’s pockets and rebuilding the NHS.

Work and Pensions Secretary Liz Kendall said: “Our ironclad commitment to the Triple Lock gives pensioners across the country the certainty and security they need to live a full life in retirement.

“We are putting more money in people’s pockets and driving up household income as part of our Plan for Change.”

Minister for Pensions Torsten Bell said: “Raising the State Pension and rescuing the NHS – these are this government’s priorities to give all pensioners the dignity they deserve in their retirement. Those who have worked hard throughout their lives, paying into the system, are owed nothing less.

“We’re improving the lives of millions of pensioners through our £7.84 billion additional funding for the State Pension this year.

“That means up to £470 extra in pensioners’ pockets from this week and comes alongside our work to boost Pension Credit uptake, and the £26 billion we’ve invested in the NHS that has seen waiting lists in England fall for 5 months in a row.”

Chancellor of the Exchequer Rachel Reeves said: “With today’s increase in working-age benefits, and our ironclad commitment to pensioners through the Triple Lock, we are making the decisions that support those who need it in Britain, putting money into people’s pockets and delivering our Plan for Change.

The uprating of State Pensions and working-age benefits amounts to a cash boost of over £6.9 billion, demonstrating our commitment to ensuring pensioners enjoy the dignity and respect they deserve in retirement, while also supporting low-income families.

It also comes alongside proposals for the biggest welfare reforms for a generation. These measures are designed to ensure a welfare system that is fit for purpose and available for future generations – opening up employment opportunities, boosting economic growth and tackling the spiralling benefits bill while also ensuring those who cannot work get the support they need.

That support also includes help for pensioners. The government’s drive to support low-income pensioners has led to 50,000 extra Pension Credit awards since the summer – an increase of 64% compared to the same period last year.

Pension Credit is worth on average £4,300 a year and also unlocks support including help with Housing Costs, Council Tax and free television licenses.

Support also includes a £742 million extension of the Household Support Fund in England, from 1 April 2025 until 31 March 2026, providing support with the cost of essentials such as food, heating and bills.

Anger over Government’s plan to demolish Grenfell Tower

DECISION IS ‘DISGRACEFUL AND UNFORGIVABLE’, SAY FAMILIES

The Deputy Prime Minister has met bereaved families and survivors of the Grenfell Tower tragedy, and written to both them and residents in the immediate community, to share her decision that Grenfell Tower will be ‘carefully taken down to the ground’.

This is a deeply personal matter for the people affected and the Deputy Prime Minister is committed to ‘keeping their voice at the heart of this process’.

The government says Ms Rayner recognises how difficult it is for them and her priority has been to let them know her decision first – but campaigners say the views of bereaved families have been ignored.

Listening to the community 

The Deputy Prime Minister has prioritised engagement with the community since her appointment in July and has met bereaved families, survivors and residents in the immediate community. 

In November last year, the Deputy Prime Minister explained to families that she would listen to their views and consider expert information before making a decision on the future of the Tower in February.

From November she offered bereaved and survivors the opportunity to meet in-person in North Kensington and Whitehall, or online, at different times and individually when families felt more comfortable with this.

She has also spent time with representative groups, residents’ associations, schools and faith leaders. She is grateful to everyone who shared their view – whether directly with her, with the Minister or officials – and especially to the bereaved and survivors.   

The Tower was the home of the 72 innocent people who lost their lives, and of survivors whose lives were forever changed. It is clear from conversations it remains a sacred site. It is also clear that there is not a consensus about what should happen to it. 

For some, Grenfell Tower is a symbol of all that they lost. The presence of the Tower helps to ensure the tragedy is never forgotten and can act as a reminder of the need for justice and accountability. Being able to see the Tower every day helps some people continue to feel close to those they lost.

For others it is a painful reminder of what happened and is having a daily impact on some members of the community. Some have suggested that some floors of the Tower should be retained for the memorial, others have said that this would be too painful.  

Expert advice 

The Deputy Prime Minister has considered independent expert advice. Engineering advice says that the Tower is significantly damaged.

It remains stable because of the measures put in place to protect it but even with installation of additional props, the condition of the building will continue to worsen over time. Engineers also advise it is not practicable to retain many of the floors of the building in place as part of a memorial that must last in perpetuity.

Taking the engineering advice into account the Deputy Prime Minister concluded that it would not be fair to keep some floors of the building that are significant to some families, whilst not being able to do so for others and knowing that, for some, this would be deeply upsetting. 

How the Tower will be taken down 

The government is committed to taking the next steps respectfully and carefully. There will be continued support for, and engagement with, the community throughout the process. There will be no changes to the Tower before the eighth anniversary.   

In the coming months, the government will confirm the specialist contractor that will develop a detailed plan for taking the Tower down.

The work will be led by technical experts with specific health and safety responsibilities and will include a methodology that includes environmental, health and safety measures and a detailed programme of work.

It will likely take around two years to sensitively take down the Tower through a process of careful and sensitive progressive deconstruction that happens behind the wrapping. 

We continue to support the independent Grenfell Tower Memorial Commission as the community choose a design team to work with them on designing a memorial. The Deputy Prime Minister will ensure that materials from the site, communal areas of the Tower, or parts of the Tower can be carefully removed and returned for inclusion as part of the memorial, if the community wishes. 

Continued commitment for the community  

The department has regularly consulted the Metropolitan Police, HM Coroner and the Grenfell Tower Inquiry to ensure decisions about the site do not interfere with their important work in pursuit of justice and accountability.

The Police and HM Coroner have again recently confirmed they have everything they need.  

The Deputy Prime Minister’s commitment to the community continues. She will ensure bereaved families, survivors and residents continue to have opportunities to speak with her and the Building Safety Minister on issues that matter to them most.

GRENFELL UNITED STATEMENT: