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State pension spending set to increase

Government expenditure on the state pension is expected to rise by 2.1% in 2019/20, according to figures from the Department for Work and Pensions (DWP).

Latest forecasts show spending for 2018/19 will be £96.8 billion, but this is estimated to rise to £98.8bn in the next year.

The DWP says the increase to the state pension age from 65 to 66 means the caseload is falling slightly.

Between April 2016 and November 2018, the age at which women are able to start claiming the state pension increased from 60 to 65, making it equal to the age for men.

The state pension age is set to gradually increase for both men and women, rising to 66 by October 2020 and eventually reaching 67 by 2028.

While the changes have had an effect on the number of people receiving the state pension, this has been offset by the uprating of the state pension in line with the triple lock system.

This meant in April 2019 the basic state pension increased by 2.6%, and the additional pension by 2.4%.

Overall spending on pensioner benefits is estimated to increase by 1.6% in 2019/20, to £106.3bn.

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