MP Demands Action on State Pension Inequality
The Department for Work and Pensions (DWP) is facing mounting pressure to address what has been described as an "unfair" and widening disparity between the Basic State Pension and the New State Pension. This call to action comes directly from Parliament, where concerns about pensioner welfare are escalating.
Labour MP Speaks Out in Parliament
Neil Duncan-Jordan, the Labour Party MP for Poole, raised the issue during a parliamentary session on February 10. He highlighted a critical flaw in the current system that affects millions of older citizens across the United Kingdom.
"Even in the current uprating arrangements, there is an unfairness," Mr. Duncan-Jordan stated emphatically. "Some 8.3 million older people are in receipt of the pre-2016 state pension, made up of a basic state pension and a second state pension."
He explained that for many, this second component would have been SERPS—the State Earnings-Related Pension Scheme—which was originally introduced by the late Barbara Castle, a revered figure in British social policy history.
The Core of the Problem: Uprating Mechanisms
The MP detailed how the disparity manifests through different uprating methods. While the Triple Lock applies to the basic state pension for those on the old system, the lower Consumer Prices Index (CPI) is used to increase the second state pension component.
"This year, that will give a difference of 1%, and over time, we have seen the gap between those on the old state pension and the new state pension widen," he noted. "That is unfair, and we should consider uprating all pensions in the same way."
Understanding the Two Pension Systems
The Basic State Pension, also known as the old State Pension, applies to individuals who reached State Pension age before April 6, 2016. It is a regular government payment based on previous National Insurance contributions, increasing annually by at least 2.5% under the Triple Lock—or more if inflation or average earnings growth exceeds that threshold.
In contrast, the New State Pension was introduced on April 6, 2016, for those reaching State Pension age on or after that date. It represents a reformed system intended to simplify pension provision, yet it has created this comparative gap with the older scheme.
A Call for Compassionate Reform
Mr. Duncan-Jordan concluded with a powerful appeal to the government's sense of social responsibility. "The protection offered by our social security system should ensure that no one in need falls through the gaps," he asserted. "That is the mark of a compassionate society, and something that we should be proud to advance."
This parliamentary intervention underscores a growing debate about intergenerational fairness and the adequacy of the UK's pension framework. As the cost of living continues to challenge household budgets, the demand for equitable treatment of all pensioners, regardless of which system they fall under, is likely to intensify in the coming months.
