State pension ‘set to rise £400 in April’ amid winter gas fee row

Ministers were accused of ‘making excuses’ today after briefing Treasury estimates that the state pension will rise by £400 in April.

The bumper hike due to the ‘triple lock’ has been highlighted as the government scrambles to defuse anger about scrapping the winter fuel allowance for millions of older people.

Chancellor Rachel Reeves underlined her commitment to the uprating – which means payments rise by the highest out of inflation, average wages or 2.5 per cent – yesterday.

Figures seen by the BBC suggest that will mean the full state pension for men born after 1951 and women born after 1953 hitting £12,000 next year.

That comes after a £900 increase last year.

The extra, based on earnings figures that are not due to be officially published until next week and roughly equivalent to 3.4 per cent, would in theory offset the loss of up to £300 from the winter fuel allowance.

However, shadow work and pensions secretary Mel Stride said: ‘Next April’s routine state pension increase does not help pensioners losing Winter Fuel Payments this coming winter.

‘Labour repeatedly misled voters at the election saying they had no plans to cut Winter Fuel Payments, as well as matching the Conservative pledge to protect the triple lock. This was not an either-or. Now they are trying to use the triple lock as an excuse for going back on their word.

‘An increase next April in line with earnings is the minimum required in law – Labour would have needed to pass primary legislation to change this. Yet they expect pensioners to be grateful while two thirds of those already in poverty are set to lose their winter fuel support.’

A bumper state pension hike due to the ‘triple lock’ has been highlighted as Rachel Reeves (pictured) scrambles to defuse anger about scrapping the winter fuel allowance for millions of older people

The final decision will be made by Work and Pensions Secretary Liz Kendall ahead of the Budget next month.

The key wage growth figure used in the calculation is for total pay including bonuses in the three months to July, and is published in mid-September.

The crunch CPI inflation rate figure is taken from September, and is published in October.

Earnings growth was 4.5 per cent this month, and if it stays around this level it will determine the state pension rise because inflation is hovering at around 2 per cent.

Keir Starmer looks set to bow to pressure for a vote on means testing the winter fuel allowance amid a brewing Labour revolt.

The government had previously batted away calls from the Tories and Lib Dems to put the issue before the Commons.

Instead ministers were going to force the move to means test the benefit through using a so-called ‘negative’ statutory instrument.

However, senior sources now believe a vote could be held as early as next week. There had been doubts over whether the government could avoid a showdown, with the Conservatives able to use Opposition time to force a division.

The final decision on the pension increase will be made by Work and Pensions Secretary Liz Kendall ahead of the Budget next month

The apparent shift emerged as Ms Reeves defended the winter fuel change during a torrid question session in the chamber – insisting older people had already enjoyed big state pension rises.

‘The basic state pension is worth £900 more than it was a year ago and will go up again in April next year because of the triple lock, which we have committed to for the duration of this parliament,’ she told MPs. 

She faced repeated warnings from her own MPs and Opposition benches about the potential consequences of stopping winter fuel payments for people in England and Wales who do not get Pension Credit or other means-tested benefits.

The policy is expected to strip around 10million pensioners of the £300 payments, saving around £1.4billion this year.