Prime Minister Andy Burnham has announced a £760 monthly tax-free payment for state pensioners aged over 75, as part of his commitment to the Triple Lock pledge for the remainder of this Parliament. The new Labour government will ensure the state pension increases each April, with the next tax year starting on April 6, 2027.
Triple Lock Maintained and Tax-Free Promise
The Makerfield MP, who succeeded Sir Keir Starmer on Monday, confirmed the Triple Lock guarantee, which promises a 2.5% hike. This would raise the basic state pension for those aged 75 and over or born before 1951 from £184 to £190 per week, equating to £760 per month. Additionally, Burnham and new Chancellor John Healey have pledged not to tax state pensioners living solely on Department for Work and Pensions (DWP) payments, sticking to former Chancellor Rachel Reeves' promise to avoid HMRC income tax bills.
Cost of Living and Policy Blitz
In his first speech as prime minister, Burnham promised to give people more “breathing space” to help with their finances, addressing the key issue of the cost of living. Angela Rayner, a senior figure, stated the administration is on “borrowed time” to turn the country around. “We’re on borrowed time if we don’t get a move on and I think Andy acknowledged that,” she said. “As prime minister he stood on the streets of Downing Street without notes and spoke directly to the public and said ‘we get it, I get the frustration’.”
Burnham has started his tenure with a policy blitz, including a cap on bus fares, a VAT cut on electricity bills, and support for pubs and clubs. Rayner said this shows he understands the frustration over the cost of living.
