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Age UK responds to the state pension uprating of 3.9% from April 2020

By: Age UK
Published on 16 October 2019 02:00 PM

Caroline Abrahams, Charity Director at Age UK, said: “The state pension increase from next April is good news for many pensioners and shows why the triple lock is so important, safeguarding the value of the state pension and ensuring that it rises in line with average earnings. This is just as important for younger people, protecting the value of their pensions in future.

“It’s worth remembering that the state pension is the main source of income for millions of older people. And for many aged 75+, particularly those on a low income who are not receiving pension credit, much of the increase will be swallowed up by the cost of having to buy a TV licence from next year if current plans go ahead.

“This is one of the reasons why we’re urging the Government to take back funding responsibility for free TV licences for the over-75s and calling on them to do much more to get vital benefits such as pension credit into the pockets of those pensioners who are most in need.      

“In the meantime we urge any older person who is worried about money to get in touch for a benefits check – our advisers can help them to put in a claim which, if successful, could potentially really boost their income over the next few years.”

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Last updated: May 11 2022

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Notes to editors:

[i] Older households are defined as households with at least one person aged 60 or over.

[ii] 2022-23

[iii]Age UK analysis of Living Cost & Food Survey 2019-20. Figures projected to 2022. Spending patterns are assumed to be the same as those in 2019-20. Prices of items are changed in line with ONS inflation output figures for the years to 2021-22, and then by 9-10% to the year 2022-23 for all items except for energy that are increased by the rise in the energy price cap of 54% in April 2022 and an assumed rise of 40% in October 2022. Household income are changed in line with output data (to 2021-22) and then forecast figures (to 2021-22) and then 3.1% for households whose main source of income is benefits and 4.42% for other households (to 2022-23). 

[iv] By poorest older households we are referring to those older households with the lowest household income after-tax (i.e. those in the lowest income decile).

[v] Age UK analysis of Living Cost & Food Survey 2019-20. Figures projected to 2022. Spending patterns are assumed to be the same as those in 2019-20. Prices of items are changed in line with ONS inflation output figures for the years to 2021-22, and then by 9-10% to the year 2022-23 for all items except for energy that are increased by the rise in the energy price cap of 54% in April 2022 and an assumed rise of 40% in October 2022. Household income are changed in line with output data (to 2021-22) and then forecast figures (to 2021-22) and then 3.1% for households whose main source of income is benefits and 4.42% for other households (to 2022-23). 

[vi] Office for National Statistics (ONS) 2022. Coronavirus and the social impacts on Great Britain: Household finances. Datasets: 19 November 2021 to 1 April 2022. Available at: https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandwellbeing/datasets/coronavirusandthesocialimpactsongreatbritainhouseholdfinances.

[vii] Those in receipt of Pension Credit, which can be backdated for three months and tops up the weekly income of a single pensioner to £182.60 or a pensioner couple to £278.70, (or higher in some circumstances) could also be entitled to the following:

  • A Cold Weather Payment of £25, paid automatically when the average temperature is 0°C or below over seven consecutive days
  • £140 off electricity bill thorough the Warm Home Discount Scheme, if eligible
  • A free TV licence (if also over-75)
  • Free NHS dental treatment and help towards the cost of glasses and travel to hospital
  • Help with Council Tax
  • Help with rent
  • Cheaper phone and home broadband deals
  • Reduced water bills
  • An extra amount of Pension Credit for some carers worth up to £37.70 a week.

For more information

Contact the Age UK Media team on 020 3033 1430 during office hours (Mon-Fri 08:30-17:30) or for out-of-hours media support please email media@ageuk.org.uk 

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