Recent government announcements have made millions of pensioners and working individuals across the country very happy. Pensions have seen a significant increase, while working families are receiving various forms of financial assistance. In this article, we will explore the specific benefits available and how these changes can impact your life.
Increase in pension under triple lock
The government has once again ensured, while keeping its ‘triple lock’ promise, that the state pension will increase every year according to the inflation rate, increase in average earnings or 2.5% – whichever is the highest of these three. This year this increase has been at the rate of 4.1%, which is also more than the current inflation rate.
Its direct benefit will be given to millions of elderly people who benefit under the Basic State Pension or New State Pension. Now pensioners who get the full basic state pension will get £176.45 instead of £169.50 a week – that is, an additional income of £360 annually. At the same time, those taking the full new state pension will now get £470 more annually.
Increasing income for working people
Along with pensioners, the government has also taken special care of the interests of working people. There has been a huge increase in the National Living Wage and National Minimum Wage, which will benefit more than three million workers.
- The National Living Wage has now increased to £12.21 per hour for those aged 21 years or above.
- The minimum wage for youth aged 18 to 20 has been increased to £10 per hour, which is the biggest increase so far.
This change will see an increase of up to £1,400 in the annual income of full-time workers. This step will not only provide financial security but will also reduce the pressure of expensive living.
Increase in Universal Credit and other benefits
This year the government has also increased working-age benefits such as Universal Credit. On average, every beneficiary will get £150 extra this year. This will directly benefit about 5.7 million households.
Not only this, but benefits such as Disability Living Allowance, Carers Allowance and Child Benefit have also been increased similarly. These changes have brought relief, especially to those families who are already under financial pressure.
Pension Credit: Another support for poor elderly
The government is trying to ensure that no elderly person remains without support. Under this thinking, Pension Credit is being promoted. More than 50,000 additional Pension Credit awards have been given in the last few months – that is, an increase of 64% compared to last year.
Pension credit not only provides a direct benefit of an average of £4,300 per year, but it also opens up other facilities, such as:
- House rent and tax assistance
- Council tax exemption
- Free TV license
These measures are not only providing financial support to the elderly but also an opportunity to live a life with dignity.
Additional support for essential items
In this era of inflation, affording essential items such as food, electricity and gas bills is a challenge for everyone. Keeping this in mind, the government has extended the Household Support Fund till 31 March 2026. Under this, an amount of £742 million will be spent, which will help the economically weaker sections with essential things.
A comprehensive plan for change: ‘Plan for Change’
Behind all these changes, the government’s idea is a sustainable and inclusive development – which they have named “Plan for Change.” It aims not only to meet current needs but also to get the economy going again, strengthen the NHS and raise people’s living standards.
Reactions from government ministers
Work and Pensions Secretary Liz Kendall said:
- “Our triple lock commitment gives pensioners the stability and security they need in retirement. We’re putting more money in people’s pockets and boosting households’ incomes.“
Pensions Minister Torsten Bell said:
- “We’ve spent an extra £7.84 billion on pensions this year. It’s all part of the recognition we want to give to people who have worked hard all their lives.“
Chancellor Rachel Reeves said:
- “We’ve proved with this increase that we’re with those who need it most – pensioners and low-income families.“
Conclusion: why is this change important?
This change isn’t just about some numbers. This is the protection of the elderly who gave their lives to the country. This is the relief of the working families who work hard every day and hope that the government will not forget them.
These schemes announced by the government are very important not only from the economic point of view but also from the social point of view. This is a sign that the country is sensitive towards its elderly, workers and the needy.
FAQs
Q. What is the new increase in the State Pension?
A. The State Pension has increased by 4.1%, giving full new pensioners an extra £470 per year.
Q. Who benefits from the National Living Wage rise?
A. Workers aged 21 and over now earn at least £12.21 per hour.
Q. How much more will full-time workers earn yearly due to wage changes?
A. On average, full-time workers can earn up to £1,400 more annually.
Q. Are any benefits apart from pensions increasing?
A. Yes, benefits like Universal Credit, Disability Living Allowance, and Carer’s Allowance have also been increased.
Q. What is Pension Credit and who can get it?
A. Pension Credit is extra support for low-income pensioners, offering up to £4,300 more per year and access to other benefits.
