Pensions Minister, Torsten Bell, has reiterated the government's commitment to uprate the state pension not only this year, but throughout the current parliament, with this expected to raise the state pension by up to £1,900 by the end of parliament.

During a Treasury debate, the minister was asked what fiscal steps were being taken to support pensioners with the cost of living, after MP for Frome and East Somerset, Anna Sabine, raised concerns over the impact of the winter fuel cut on pensioners.

In his response, Bell stressed that the government is taking action, explaining that the "government’s top priorities for pensioners are to raise the state pension and to rescue the NHS".

"This week more than 12 million pensioners saw their state pensions rise by 4.1 per cent, well ahead of inflation," he continued.

"That is worth an extra £470 a year for someone on the full new state pension, and £360 a year for those on the full basic state pension."

Asked what more the government was doing on top of this, Bell also confirmed that the government is committed to uprating the state pension further in the future.

"We are not just increasing pensions above the rate of inflation this year but doing so throughout the current parliament, and that should raise the state pension by up to £1,900 by the end of the parliament," he stated.

Industry experts previously expressed relief that the government was avoiding making any changes to the triple lock after Chancellor, Rachel Reeves, delivered her Spring Statement, with many emphasising the need for certainty on this to allow savers to properly plan for retirement.

However, the minister also faced questions on whether the government is looking at raising the level of the personal tax-free allowance in line with the basic state pension, following concerns that the number of pensioners paying income tax has continued to grow.

Indeed, industry experts previously warned that increases in the state pension could be a “double-edged sword” for some pensioners, with more pensioners pushed into a tax-paying bracket for the first time, or paying more in tax as a result.

However, Bell pointed out that the "vast majority" of pensioners already paid income tax under the previous government, noting that, when individuals’ wider income was taken into account in 2022/23 over 80 per cent of pensioners had an income over the Personal Allowance Tax Threshold.

"This government is absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement," he added, again reiterating the government's commitment to protect the triple lock, which is set to increase spending on the state pension by around £31bn.

But this latest increase has put the state pension "perilously" close to the frozen £12,570 personal allowance, according to AJ Bell director of public policy, Tom Selby, who warned that "the government is walking a precarious financial tightrope to balance its fiscal rules".

"With little to no wriggle room built into current plans, it may still be forced to look elsewhere for further savings. And one area that could come under scrutiny is the state pension," he continued.

"If the government is looking to cut costs, then pensioner spending could be something that moves into the Treasury’s crosshairs in the next few years.

“Any changes to the state pension will be hotly contested. But the crunch time is fast approaching when the government will finally be forced to address the question of how much the state pension should really offer, at what age, and how it can increase payments sustainably each year.”

These issues are the current focus of the Work and Pensions Committee's pensioner poverty inquiry, with industry experts suggesting that the government needs to agree an income replacement target to help inform state pension policy, arguing that, instead of the triple lock, a better system would be to set a target for what the state pension should be and a pathway to get to that target.

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