A decades-old state pension supplement still grants eligible retirees an additional 25p per week once they turn 80—but experts argue it’s no longer fit for purpose. This little-known payment has remained unchanged since its introduction more than fifty years ago, raising fresh questions about its relevance in today’s economic landscape.
Although it continues to be paid automatically to qualifying recipients of the state pension, many are unaware of its existence until they receive a formal notice. According to Devon Live, increasing voices within the financial community now suggest that this symbolic amount no longer meets the real-world needs of older pensioners.
Who Qualifies and Why the Amount Has Not Changed
The current policy provides an extra £0.25 per week—or £13 annually—to those receiving the basic state pension once they reach the age of 80. Eligibility specifically applies to individuals born on or before 1944, or those who turn 80 this year.
The Department for Work and Pensions (DWP) automatically notifies qualifying pensioners of the supplement via letter. Introduced in 1971, this payment was initially a 4% uplift at a time when the weekly state pension stood at just £6. It has remained unchanged for over half a century.
Notably, this extra amount does not apply to individuals receiving the new state pension, which covers retirees who reached pension age on or after April 6, 2016.
Criticism Over Inflation Impact and Current Adequacy
The DWP has defended the policy in the past, stating that the 25p addition exists because people over 80 “need help rather more than others.” But in response to recent questions, a government spokesperson confirmed that there are “no current plans” to revise the amount.
The spokesperson added:
We are determined to support pensioners, and our triple lock commitment means millions are set to see their state pension rise by up to £1,900 this Parliament.
More widely, as part of our Plan for Change, we have raised the national living wage, increased benefits, and given additional help to the poorest households.
Critics argue that the symbolic 25p has lost all relevance in today’s economic environment. Tom Blake, founder of Money Saving Guru, calculated that had the supplement kept pace with inflation, it would now be worth £3.20 per week, or £166 annually—£150 more than it currently provides.
He emphasised the urgency of the issue, stating:
People living well into their 80s and 90s are much more likely to be managing long-term health conditions, paying for home help or care services, and facing higher energy costs simply to stay warm.
These aren’t discretionary expenses, they’re necessities, and yet the financial support of the pension system hasn’t evolved to reflect that.
Proposals for a New Age-Tiered Supplement
Blake has suggested a targeted supplement that would remain financially sustainable for the Treasury, while delivering meaningful aid to those who need it most.
It could kick in at 80, or even be tiered further at 85 or 90 – he proposed.
A modest uplift of £3 to £5 each week would align much closer with the current economic climate than the longstanding 25p. Such an uptick wouldn’t cost as much as a universal state pension rise but would provide a significantly larger relative benefit for the individuals who receive it.
Adding £5 weekly would translate to an extra £260 annually, far exceeding the existing £13 total.
