Though means-testing state pensions has been touted recently, the policy would be unpopular and pose problems for any government
Politicians would be aware of political sensitivities around means-testing the state pension given the Waspi campaign, experts have said forms the backbone of most people’s retirement – but there have been fears recently that it could be means tested in the future.
The Government has previously said it remains committed to the principle of providing 10 years of notice of changes to state pension age, and so it is likely that this amount of time or more would be given as notice if a means-test was introduced. “But politically, particularly given the sensitivities around Waspi, they’d likely need to give significant warning.”
Morrissey has said that the idea of means-testing the state pension would be “hugely unpopular,” and so there are questions about whether a Government would be willing to make a change that would provide no financial benefit within its five year parliamentary term. Rules that only took income into account may allow those with low incomes but significant asset wealth to receive a larger state pension that those in the reverse position for example. Meanwhile, a measure that took wealth in to account could also lead to people finding loopholes.
“For comparison, when Labour talked about means-testing the winter fuel payment ahead of the 2015 election, when Rachel Reeves was shadow Secretary of State for Work and Pensions, they said that only the richest 5 per cent would be affected – a very different policy from the one implemented in 2024.”Experts have also said that means-testing the state pension could reduce the number of people that would save into retirement schemes.
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