State pensioners handed three payments worth £1,220 after Budget

State pensioners have been handed a boost of State Pension and Pension Credit under the new Labour Party government. Chancellor Rachel Reeevs delivered her first Autumn Budget today and announced that the government is committing to the state pension Triple Lock.

This means that from April 2025, state pensions will increase by 4.1 per cent, or £470 for the full new state pension. The Chancellor added on making the announcement: “That’s up to £275 more than if uprated by inflation.”

Pension Credit is also being increased from April. Rachel Reeves said that Pension Credit will be increased from £11,400 to £11,850 for a single pensioner - a rise of £450, which on top of Pension Credit, which unlocks the £300 Winter Fuel Allowance, is worth £1220.

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Ms Reeves said: “This commitment means that while working-age benefits will be uprated in line with CPI at 1.7%, the basic and new state pension will be uprated by 4.1% in 2025-26.- This means that over 12 million pensioners will gain up to £470 next year.”

She added: “The pension credit standard minimum guarantee will also rise by 4.1% from around £11,400 per year to around £11,850 for a single pensioner.” It comes after the Government was accused of creating a “black hole” in pensioners’ household finances by cutting the winter fuel allowance.

Conservative MP for Mid Bedfordshire Blake Stephenson has told the Commons: “Around 93% of pensioners in Mid Bedfordshire face losing the winter fuel payment this year, some earning less than £1000 per month. What further support is the minister going to give them to fill Labour’s black hole in their household finances so they can keep warm this winter?”

Work and Pensions minister Emma Reynolds replied: “The winter fuel payment was once described as the largest benefit paid to pensioners, regardless of need, giving money to the wealthiest pensioners when working people on low incomes do not get similar support, not my words, but the words of the Tory 2017 manifesto”.