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Peer Urges Means-Testing of UK State Pension as Centenary Rekindles Funding Debate

Ministers have said they have no plans to means-test the benefit.

Overview

  • Conservative peer Lord Craig Mackinlay used a newspaper op-ed to argue for means-testing the state pension and floated a “less for longer” option allowing early access at a reduced rate based on life expectancy.
  • An online petition calls to review, reform and means-test the pension, including ending payments for people with annual incomes over £50,000, with thresholds that could trigger a government response or a parliamentary debate.
  • The Department for Work and Pensions and Work and Pensions Secretary Pat McFadden previously stated the Labour government does not intend to introduce means-testing.
  • Official figures highlighted in coverage put the state pension bill near £146 billion for 2025–26, with the OBR warning costs could be about £10 billion a year higher by 2029–30 as the worker-to-pensioner ratio tightens.
  • Under the triple lock, the full new State Pension is set to rise to about £241.30 a week, and research cited by Pensions UK reports 89% of people want the benefit to keep pace with the cost of living.