Tories and Labour mooting possible means testing of State Pension

[Turmerictolly]

www.theguardian.com/politics/2025/jan/17/kemi-badenoch-pensions-triple-lock-means-test-alarm-tories

I would be so gutted if this happened but there's noise from both parties about this recently. I think it might be inevitable. What will happen to those of us nearing 60 who have made plans that include the full state pension we've paid contributions for?

Honestly, I feel like with every week that goes by the prospects for the average person in this country gets worse and worse and everything seems so fucking bleak.

It might save money in the middle term but people will start thinking why work, why pay into the system, why be forced to sell my home for care fees etc.

It becomes a race to the bottom.

And in those mid to longer terms, we will see the effect of a lower birth rate... more immigration for care work etc while those that can afford an education train specifically in courses that will get them a visa to a more prosperous country.

@Username056 the fact that you conflate UC and PIP is pertinent and also disabilist. UC is frequently paid to people in low paid jobs and would be reduced if employers paid living wages. PIP is also paid to working people but only those disabled enough to meet criteria.

UC is means tested. PIP is not but is tested according to disability criteria.

I agree that employers should pay a living wage and this would reduce the tax burden/benefit bill without reducing income of workers. Meaning they would still pay into the wider economy.

I don't agree that PIP should be reduced as the reduction would only impact the disabled whether in work or not.

www.resolutionfoundation.org/publications/locked-in/

Torsten Bell is the new Pensions Minister.

This is why I'm assisting my dc to obtain an EU passport and encouraging them to learn another language and to study for something vocationally useful. The prospects for our dc really are diminishing unless they're independent wealthy or have wealthy parents.

www.ii.co.uk/analysis-commentary/what-changes-will-bell-ring-pensions-minister-ii534091

So getting attendance allowance does not mean you get Pension Credit automatically but it does mean that if you get Pension Credit, then you will get more Pension Credit if you also have attendance allowance.

There are plenty of ticking time bombs that are not being addressed.

If the state pension was means tested what would be the incentive to pay into a private pension fund? You would end up with the same income in retirement anyway.
This will hit middle income earners.
NI used to be different from general taxation. The clue is in the name-a National Insurance scheme. You paid in so that you could claim benefit if you were sick, unemployed or retired.
Changes to the system have made it all very confusing now, but I would be gutted to have paid NI for 40 years and then not to receive a pension.

It makes it a lot more likely that you will get Pension credit as it can significantly raise the pension credit threshold. Ultimately whether you qualify for Pension credit will depend on lots of factors - state pensions, private pensions, savings and disability, being a carer etc.

It's the sheer lunacy of anyone relying on the state pension that I cannot believe. It's just under 12k a year. That is absolute peanuts and a ticket to poverty.

Anyone who is working now can improve that situation. It's pretty much mandatory unless you fancy barely surviving.

Does anyone know the reasoning behind why you don't have NI deducted from earned income when you reach retirement age? I carried on working for 2 years to defer my state pension and was surprised when NI contributions stopped.

Lots of people will have saved a pension which with the state pension would be fine - say another 12 k ( pension pot around 250k)

Now without the state pension it's not great but with it it's fine if quite basic

Now without the state pension it's not great but with it it's fine if quite basic

Without the state pension it's horrific, because I'd imagine trying to survive on the state pension is horrific. Imagine trying to heat your home, do any major household repairs, buy a new car... you'd be screwed.

If people are expecting to get say £25 a year and they bring in means testing and 12K of that is taken away then instead of the modestly, barely comfortable retirement they'd planned and saved for, they'll be living on near-poverty.

Sorry I think I wrote that very badly ( hut post before rereading )

I think I agree with you

A pot of 250k is a lot for most people - without the state pension as an addition it's pensions credit territory especially if you don't own your home

Sorry I think I wrote that very badly ( hut post before rereading )
I think I agree with you
A pot of 250k is a lot for most people - without the state pension as an addition it's pensions credit territory especially if you don't own your home

Then we're definitely in agreement, I see exactly what you mean.

That paper seems to me to be based on a commitment to providing state pensions to everyone. It is just discussing how exactly pensions should be uprated each year to reflect increases in the cost of living.

Absolutely nothing about means testing (i.e. simply removing some people's entitlement). It is just about the particular unfairness of the annual triple lock during the covid period where wages were particularly haywire.

I think basically they will have to remove the triple lock. Pensions will be uprated like other benefits.

Yes….but. They paid NI - it’s not optional. If they weren’t, they could have shored up their private pensions even more.

If NI contributions don’t help you qualify for SP, then it’s yet another tax. And another disincentive to work/save/put away for your future.

Off topic a bit but I can’t understand why people who are working get free bus passes (Scotland/Wales/London) at age 60. My boss is on about £90k and gets free bus travel! She’s 63 and in good health and plans to work for the foreseeable. It makes no sense to me that people are expected to work until they’re 67 but get a bus pass at 60 when they may be on the best income of their life 🤷‍♀️

The triple lock is something that could be re-examined

It was brought in because of the way the state pension had deteriorated so much - it was meant to bring it back up on form - so if it has served its purpose - then it probably should be inflation linked ?

Surely this if going to fuck over mainly older women 😞 who gave up a lot of work to raise children back in the day so don't have good private pensions. Worse if the means testing involves having over 6k in savings like benefits do now. So they have to be skint to get anything or spend all their savings first

This is spot on!

The "I paid into the system" argument is wrong. Todays workers pay for todays pensioners and always have done. The balance is tipping as we have more pensioners and fewer workers every year. Ironically stopping immigration will make this a bigger issue far quickly. We either reduce the pension or raise the age and most people will take the latter. Obviously that does not stop people retiring when they want but they will have to fund it themselves.

Another reason reason the generation born just after the war have had it better than any generation.

Retire at 60 for women,
Plenty social housing,
GP same day for non urgent care
Able to buy a house on a normal minimum wage job

Generations now-

Retirement will be about 75 by the time it’s our turn
Mortgages are only for those with high earnings
No social housing
Ridiculously high rents and not many about (bidding to rent somewhere!)
NHS dentistry almost non existent
No access to GP, it’s a lottery if they even pick up the phone
No ambulances guaranteed in an emergency

……and now to take away the pension for this generation. Just fucking wonderful!!

Instead of saving, people will think fuck it
and blow their savings on holidays and the like and quite right.

And I mean the older women who's ex husband screwed them over, unfortunately many such cases