Today marks the first Budget in 14 years for Labour after years of Conservative government
Rachel Reeves has announced a boost to State Pension payments as part of Labour's first Autumn Budget since winning the General Election. The upgrade, equating to a 4.1% rise, is expected to take place in April 2025, marking the start of a new financial year.
"The Pension Credit Standard Minimum Guarantee will also rise by 4.1% from around £11,400 per year to around £11,850 a year for a single pensioner." Reeves' change affects both the full Basic State Pension and New State Pension. Saq Hussain, Founder of Financial Education, explained that while this benefit may significantly help towards essential costs like utility bills and food, its impact may be partially offset by the removal of the £300 Winter Fuel Payment.
"However, it should be noted that, for some pensioners, the benefit of this rise will be partially offset by removing the £300 winter fuel payment, which has previously helped cover heating costs in the colder months. In my view, there is a broader consideration regarding the triple lock's long-term affordability.
The allowance contentiously means that around 8.1 million older people pay tax during retirement, primarily due to additional income from a workplace or private pension on top of the State Pension. So, with the increase, retirement expert Adam Pope at Spencer Churchill Claims Advice predicts that nearly 900,000 more people will exceed the Personal Allowance threshold of £12,570 over the current financial year , according to the Daily Record.
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