The Department for Work and Pensions (DWP) has confirmed there are no plans to increase the 25p weekly state pension addition for older pensioners, a payment that has remained unchanged since it was introduced in 1971.
Under current state pension rules, older pensioners are entitled to enhanced payments when they reach 80, on top of other allowances such as a boosted winter fuel payment. While the increased winter fuel payment is worth £100 a year extra, the enhanced over-80s pension is less generous and successive governments have chosen not to increase it.
Payment frozen since 1971
Listed as 'Addition at age 80' in the government's benefits list, the amount has been set at 25p per week again for the current tax year, with no uplift for the benefit in the triple lock, despite increases for other now-defunct pension schemes such as Second State Pension.
Similar to the £10 Christmas bonus, the 25p payment has never been adjusted for inflation since it was first introduced in 1971. At the time, pensions were £6 per week, so 25p represented a 4% boost. Today, this same 25p represents 0.13% of a basic state pensioner's maximum payments of £184.90.
Pensioner calls payment 'insulting'
One state pensioner eligible for the 25p boost contacted the Express to raise awareness of the payment. Timothy Pinner said the DWP had sent him three separate letters to tell him he would be entitled to extra money, before revealing the full amount.
Pinner told the Express: "Just prior to my eightieth birthday I received three separate letters from the DWP about this, and was quite looking forward to receiving it. When the first payment arrived I felt insulted. It amounts to Twenty Five PENCE per week. Which equates to One Pound a month or Thirteen Pounds a year. Big deal."
Historical context and DWP response
In a Research Briefing issued by Parliament in 2013, it was explained that the addition has never been increased and was specifically excluded from statutory index linking provisions. The briefing noted that if the 25p addition had been increased by the Retail Prices Index since 1971, it would now be around £3.20 per week, with an annual additional cost of around £500 million.
The DWP stressed to the Express that the amount, which is only available to older state pensioners who hit state pension age before April 2016, would be classed as taxable income should it be increased, and instead governments have focused on boosting other elements. The department confirmed there are no plans to change the 25p per week rule.
A DWP spokesperson said: "Supporting pensioners is a top priority and our commitment to the Triple Lock means millions of older people will see their State Pension rise by up to £2,100. The Age Addition will continue for those who qualified, and there are no plans to change the current arrangements."
