PARLIAMENTARY WRITTEN QUESTION
Pension Credit and Winter Fuel Payment (4 October 2024)

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing (a) Pension Credit and (b) the personal allowances of pensioners to mitigate the potential impact of the removal of Winter Fuel Allowance.

Asked by:
Vikki Slade (Liberal Democrat)

The standard minimum income guarantee for a single person and couples in Pension Credit rises in line with average earnings to ensure that it maintains its relative value over time to ensure that Pension Credit (Guarantee Credit) will continue to provide a safety net for those who find themselves without an adequate income in retirement.

The government wants to ensure that individuals receive the support that they are eligible for, and we have already seen a greater than 152% increase in Pension Credit claims since the July Statement.

The previous government announced the Personal Allowance (PA) would be maintained at its current level of £12,570 until April 2028. The PA —the amount of income someone can earn before paying income tax—is currently set high enough to ensure that those pensioners whose sole income is the new State Pension or basic State Pension, and who have not deferred and do not receive protected payments, do not have to pay any income tax.

Answered by:
Darren Jones (Labour)
14 October 2024