Labour claim state pension will be £400 better off is ‘incorrect’ as facts laid bare
The two state pension types will increase at different rates next year.
Recent claims from a Labour MP that basic state pensioners would see a £400 boost in their payments next year have been called into question, with fact-checking charity Full Fact highlighting inaccuracies in the figures.
In a BBC Radio 5 Live interview, Chancellor of the Duchy of Lancaster, Pat McFadden, suggested that people receiving the basic state pension would receive "about £400 or more" as a result of the triple lock policy. However, this claim does not hold up under scrutiny.
The confusion stems from Mr McFadden’s statement conflating the basic state pension with the new state pension.
Describing the statement as “incorrect”, Full Fact's Hannah Smith clarified: "The full basic state pension is set to rise by around £350 from April next year, not £400."
The basic state pension applies to men born before April 6, 1951, and women born before April 6, 1953, and the increase is notably less than Mr McFadden's suggested figure.
Ms Smith went on to explain that the larger increase McFadden mentioned likely refers to the new state pension, which is projected to increase by approximately £460. This pension applies to those born after the aforementioned dates.
Ms Smith said: "It seems likely Mr McFadden misspoke," underscoring the potential misunderstanding between the two pension types.
The discrepancies arise from the rules governing the triple lock, which ensures that pensions rise annually by the highest of three factors: inflation, earnings growth, or 2.5 percent.
Based on current data, the state pension is expected to rise by four percent from April 2025, reflecting recent wage growth figures. However, this increase will vary depending on whether one is receiving the basic or new state pension, and the £400 figure inaccurately generalises across both groups.
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Mr McFadden’s comments also caused confusion regarding the timing of financial relief. Although he spoke about increases over "the next year," he was responding to a question concerning financial pressures this winter.
The state pension saw an increase in April this year, with the basic state pension rising by around £700 annually, and the new state pension by roughly £900.
Full Fact, which is a registered charity of independent fact-checkers, emphasised the importance of accuracy in public statements, particularly when addressing financial matters that affect millions of pensioners.
For now, pensioners will need to await official guidance on the actual increases coming in 2025. Chancellor Rachel Reeves is expected to announce the rates during the upcoming Autumn Statement on October 30.
Express.co.uk has contacted Mr McFadden for comment.
