A Parliament website petition calling on the new Labour government to “abolish the Basic State Pension” is growing the campaigners saying all current beneficiaries should be moved to the more lucrative New State Pension.
The campaign also calls for an increase that aligns with a “good percentage of average earnings”. On April 7, state pensioners are set for a financial uplift thanks to the Triple Lock’s earnings growth clause – a rise of 4.1 per cent.
For those receiving the full New State Pension, this will mean an additional £9.05 per week, taking their total from £221.20 to £230.25, equating to an annual boost of £921 (£11,900 yearly). In contrast, individuals on the full Basic State Pension will experience a smaller weekly increase of £6.95 – moving from £169.50 to £176.45.
This change represents an extra £361.40 annually, increasing their total yearly income from £8,814 to £9,175.40 by the 2025/26 fiscal year.
Should the Basic rate be replaced with the New State Pension, pensioners could gain an extra £636 per year, or an additional £53.80 each month. To accumulate qualifying National Insurance (NI) years, one must either work and pay NI contributions or earn NI credits, typically requiring earnings above a certain threshold within a tax year to secure these qualifying years.
If you’re in full-time employment, even on the minimum wage or just a few days a week throughout the year, you’re likely to earn a qualifying year. These qualifying years don’t have to be consecutive, as advised by Money Saving Expert – the site from Martin Lewis, reports Coventry Live.