Andy Burnham has announced that if he becomes Prime Minister, state pensioners born after 1951 will receive payments exceeding £12,570. Supporting Chancellor Rachel Reeves’ proposal, Burnham backs removing income tax liabilities for pensioners as their state benefit rises above the personal allowance threshold.
The upcoming increase to the state pension, triggered by the Triple Lock mechanism, will raise payments above £12,570 starting next year. This benefit applies to men born before 1951 and women born before 1953.
Despite calls from some critics to abandon the Department for Work and Pensions’ Triple Lock promise, Burnham remains committed. Financial adviser Martin Rayner warns that welfare spending now outstrips income tax revenues and continues to grow, highlighting the inevitability of reform. While scrapping the Triple Lock outright is politically sensitive, transitioning to a formula tied to earnings or inflation over a longer period may be more sustainable.
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Ed Monk from Fidelity notes the significant impact of the Triple Lock. The full state pension was £230.25 weekly (£11,973 annually) for 2025/26 and is set to rise by 4.8% next year to £241.30 weekly (£12,548 annually). This marks more than a 30% increase since the 2022/23 tax year, when the full pension was £185.15 per week.
Burnham emphasizes the need to protect pensioners from being pushed into paying income tax due to frozen thresholds. He stresses that breaking Labour’s manifesto promise would be “very damaging,” recalling the negative response to an initial proposal to cut winter fuel payments.
Work and Pensions Secretary Pat McFadden reinforces the government’s commitment: “Global shocks and rising living costs are causing anxiety, but we will always protect our pensioners. That’s why the full new State Pension is set to rise by up to £575 next year.”
Minister for Pensions Torsten Bell adds, “After a lifetime of work, people deserve a decent retirement. Raising State Pensions faster than inflation ensures millions can depend on their retirement income.”