Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department has made a comparative assessment of the impact of receiving the (a) basic State Pension and (b) new State Pension on recipients of those pensions, in the context of the cost of living crisis.

The Government understands the pressures pensioners are facing with the cost of living and has taken clear action to support all pensioners. Nearly 12 million pensioners will benefit from a 10.1% increase to their State Pension payments from April 2023, under the Triple Lock.

People on the basic State Pension can receive amounts of earnings-related additional State Pension or, if they were contracted-out, an occupational or private pension, or a combination of the two. In 2023/24, additional State Pension payments will also increase by 10.1%. Most people on the new State Pension do not receive the full rate, as the amount is based on an individual’s National Insurance record paid both before and after 2016 when the new State Pension was introduced. Transitional arrangements are in place that reflect this and ensure fairness to both groups of people.

Pension Credit is an income-related benefit that targets help at the poorest pensioners, whether they reached State Pension age before or after the introduction of the new State Pension.

In addition, all Pensioner households have been supported by a £300 Cost of Living payment in 2022/23. In 2023/24 a further Cost of Living payment will be made. More than eight million pensioner households will receive an additional £300 to help with bills.

The Government’s Energy Price Guarantee, running from October 2022-March 2023, saves a typical British household around £900 this winter, based on what the energy price would have been under the current price cap – reducing bills by roughly a third. This is in addition to over £37bn of cost of living support announced earlier this year which includes the £400 non-repayable discount to eligible households provided through the Energy Bills Support Scheme. To ensure stability and certainty for households, the Government is providing a further £26bn in cost of living support for 2023/24.

Pensioners can also benefit from the discretionary Household Support Fund for which the government has provided total funding of £2.5 billion.

This is a substantial package of support which recognises the current additional costs faced by pensioners.