Millions of the UK's oldest state pensioners are receiving an extra payment of just 25 pence per week, a sum that has remained frozen for over five decades.
The 25p 'Birthday Present' for the Over-80s
This small payment, known as the age addition, is automatically added to the state pension when an individual turns 80. It was first introduced in 1971 by the government to acknowledge that the very elderly often have greater financial needs.
However, the amount has never been increased from its original 25p per week rate. Successive governments have prioritised protecting core benefit levels or chosen to support older pensioners through other means, such as the Winter Fuel Payment.
An 'Insulting' Sum in the Modern Age
The payment's stagnant value has sparked criticism from recipients who feel it is now tokenistic. Radio Times reader Delia contacted BBC Money Box after turning 80, describing the 25p rise as "an insult" and a way to "let off steam".
BBC journalist Paul Lewis put the sum into stark perspective, noting: "It’s now worth so little you’d need to save it up for three weeks to buy a second-class stamp!"
He provided a powerful comparison: in 1971, the basic state pension was £6 per week. The 25p addition then would be equivalent to adding £6.50 to today's full basic state pension of £156.20 weekly.
A Costly Legacy with an Uncertain Future
Despite its paltry individual value, the policy has a significant aggregate cost. Providing the 25p to all 3.6 million state pensioners over 80 costs the Treasury approximately £47 million annually.
Paul Lewis suggested that while scrapping the "paltry sum" might seem logical, the political backlash would be severe. Conversely, uprating it to its 1971 equivalent value of £6.50 would cost over £1 billion a year, a move seen as highly unlikely.
The issue has a natural end in sight. The age addition will not be paid with the new state pension. It will effectively be phased out as the first recipients of the new pension scheme reach 80 years of age.
