New update on calls for monthly State Pension payments of £2,344 | Personal Finance | Finance

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More than 10,500 people have signed an online petition urging the UK Government to boost weekly State Pension payments to £586 for every person over the age of 60, including Britons living abroad in retirement. The campaign has now surpassed the signature threshold, which entitles it to a written response, most likely from the Department for Work and Pensions (DWP).

Petition creator Denver Johnson proposes raising payments to match 48 hours each week at the National Living Wage rate of £12.21 per hour. Such an increase would provide 13 million people currently receiving the State Pension – and those over 60 – with £2,344 every four-week payment period, totalling £30,476 each year.

This boost would also apply to some 453,000 pensioners whose State Pension has been frozen at the point of emigration because the country they now reside in does not have a reciprocal agreement with the UK Government, reports the Daily Record.

The ‘Give State Pension to all at 60 and increase it to equal 48 hours at Living Wage’ petition has been published on the petitions-parliament website and declares: « We want the Government to make the State Pension available from the age of 60 and increase this to equal 48 hours a week at the National Living Wage. »

The petition added: « Hence, from April 2025, a universal State Pension should be £586.08 per week or about £30,476.16 per year as a right to all, including expatriates, age 60 and above.

« We think that Government policy seems intent on the State Pension being a benefit not paid to all, while ever increasing the age of entitlement. We want reforms to the State Pension, so that it is available to all, including expatriates, from age 60, and linked to the National Living Wage, for security. »

If the petition reaches 100,000 signatures of support, the Petitions Committee will consider it for debate in Parliament.

Annual State Pension uprating

Under the Triple Lock mechanism, State Pensions rise each year in accordance with whichever proves highest among average annual earnings growth from May to July, Consumer Price Index (CPI) inflation in the year to September, or 2.5 per cent.

The New and Basic State Pension rose by 4.7 per cent in April, meaning someone receiving the full New State Pension currently gets £230.25 per week, or £921 every four-week pay period. Those receiving the full Basic State Pension get £176.45 each week, or £705.80 every four-week pay period.

State Pension uprating predictions for 2026/27

The Triple Lock is presently on course to be determined by the earnings growth component which currently stands at 5.2 per cent (excluding bonuses). Nevertheless, this figure may rise or fall and isn’t the final metric that will determine the level of uprating.

The CPI figure for July stood at 3.8 per cent with the August figure due to be published by the Office for National Statistics (ONS) on September 16. That being said, a 5.2 per cent increase on the current State Pension would see individuals receive the following amounts.

Full New State Pension

  • Weekly: £242.90
  • Four-weekly pay period: £971.60
  • Annual amount: £12,630.80

Full Basic State Pension

  • Weekly: £186.25
  • Four-weekly pay period: £744.60
  • Annual amount: £9,679.80

The annual adjustment won’t be confirmed until the Autumn Budget on November 30, but pensioners – and those due to retire next year – can start to plan their finances by following the Triple Lock measurements. The September CPI figure will be published in mid-October.

State Pension and tax

Earlier this year, the Labour Government confirmed that the Personal Allowance will remain frozen at £12,570 until April 2028. If the New and Basic State Pension increased by the lower measure of the Triple Lock (2.5%), it would see the full New State Pension exceed the income tax threshold by nearly £79 in the 2027/28 financial year (£12,578.80).

While the amount of State Pension to be taxed may seem relatively small – tax is only paid on the amount over the Personal Allowance – older people with other income streams could find themselves having to part with more cash to pay a tax bill – if it’s not automatically deducted from private or workplace pensions through PAYE.

And remember, that figure is based on the lower measure of the Triple Lock. Using the current projections, more pensioners could be dragged into the retirement tax net sooner, especially if they have additional income through a private or workplace pension.

What is taxed

The GOV.UK website provides guidance stating: « You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates. Your total income could include: Check if you have to pay tax on your pension.

« Before you can check, you will need to know: You cannot use this tool if you get: Use this online tool at GOV.UK to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on GOV.UK here. »