A new online petition is calling on the UK Government to increase State Pension payments to £610 a week for every person over the age of 60, including British expats living abroad in retirement. The petition proposes linking the pension to 48 hours per week at the National Living Wage rate of £12.71 per hour.
Petition Details and Impact
The proposals would give 13 million current State Pension recipients and those aged over 60 an additional £2,440 every four-week payment cycle, totalling £31,724 annually. This increase would also extend to approximately 453,000 pensioners whose State Pension has been frozen due to emigration to countries without reciprocal arrangements with the UK Government.
The 'Give State Pension to all at 60 and increase it to equal 48hrs of Living Wage' petition has been published on the UK Parliament petitions website. It states: "We want the Government to make the State Pension available from age 60 and increase it to equal 48hrs a week at the National Living Wage."
The petition argues: "We think that Government policy seems intent on the State Pension being a benefit not paid to all, while ever increasing the age of entitlement. We want reforms to the State Pension, so that it is available to all including expatriates, from age 60, and linked to the National Living Wage, for security."
Current Status and Thresholds
When a petition reaches 10,000 signatures, it becomes eligible for a written response from the UK Government. However, at the time of writing, this petition had just over 4,000 signatures. Should it reach 100,000 signatures, the Petitions Committee will consider it for parliamentary debate, according to the Daily Record.
Current State Pension Rates and Triple Lock
Through the Triple Lock mechanism, State Pensions rise annually according to the highest figure among average earnings growth between May and July, Consumer Price Index (CPI) inflation for the year ending September, or 2.5 per cent. Both the New and Basic State Pension saw a 4.8 per cent increase in April, meaning recipients of the full New State Pension now receive £241.30 weekly, or £965.20 per four-week payment cycle. Full Basic State Pension recipients receive £184.90 per week, or £739.60 per four-week payment cycle.
Tax Implications for State Pension
GOV.UK guidance explains: "You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates. Your total income could include: the State Pension you get - Basic or New State Pension, Additional State Pension, a private pension (workplace or personal) - you can take some of this tax-free, earnings from employment or self-employment, any taxable benefits you get, and any other income, such as money from investments, property or savings."
Before checking if you need to pay tax on your pension, you need to know: if you have a State Pension or a private pension, how much State Pension and private pension income you will get this tax year (April 6 to April 5), and the amount of any other taxable income you'll get this tax year (for example, from employment or state benefits). This tool cannot be used if you receive any foreign income, Marriage Allowance, or Blind Person's Allowance. Comprehensive guidance on pension taxation is available on GOV.UK.
