Is state pension a benefit?

PoGee
PoGee Posts: 541
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edited 2 January at 10:48AM in Benefits & tax credits
I didn't think it was means tested so why does the gov want to look at pensioner accounts? Online news says - if they suspect fraud. But if it's not means tested and a person has paid 40 years NI, in what way would the pensioner be communicating fraud? Some say it's a ploy to eventually make it means tested. I've just about paid 40 years worth but around 9 years from state pension age. Would have been good if it was still 60....the good old days.
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  • Spoonie_Turtle
    Spoonie_Turtle Posts: 8,180
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    edited 31 December 2023 at 6:47PM
    PoGee said:
    I didn't think it was means tested so why does the gov want to look at pensioner accounts? Online news says - if they suspect fraud. But if it's not means tested and a person has paid 40 years NI, in what way would the pensioner be communicating fraud? Some say it's a ploy to eventually make it means tested. I've just about paid 40 years worth but around 9 years from state pension age. Would have been good if it was still 60....the good old days.
    To answer the question in your title: yes, the State Pension is a benefit.  But you're correct it's not means-tested.  It is a contributions-based benefit.

    Pension Credit however is means-tested.

    I suspect the online news you have read is not accurate and/or not clear with their reporting.
  • PoGee said:
    I didn't think it was means tested so why does the gov want to look at pensioner accounts? Online news says - if they suspect fraud. But if it's not means tested and a person has paid 40 years NI, in what way would the pensioner be communicating fraud? Some say it's a ploy to eventually make it means tested. I've just about paid 40 years worth but around 9 years from state pension age. Would have been good if it was still 60....the good old days.
    To answer the question in your title: yes, the State Pension is a benefit.  But you're correct it's not means-tested.  It is a contributions-based benefit.

    Pension Credit however is means-tested.

    I suspect the online news you have read is not accurate and/or not clear with their reporting.
    The news is correct, the proposed new law just states "benefit claimants" so State pensions is in that remit.
    The DWP  might say it won't happen, but that would have to be taken on trust.
    Let's Be Careful Out There
  • PoGee
    PoGee Posts: 541
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    I've remembered where I first saw this. It was on this forum under the title - 'Gov Access to Bank Accounts for those in receipt of SP'. 
    I think at the time of that thread, it wasn't concrete.
  • maisie_cat
    maisie_cat Posts: 2,056
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    The state pension, while not means tested does not increase in certain countries so checking that a pensioner registered in the UK is not actually living in Australia or South Africa might be obvious from bank account checks.
  • PoGee
    PoGee Posts: 541
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    It might also be something to do with care home fees.
  • badmemory
    badmemory Posts: 7,517
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    edited 31 December 2023 at 7:46PM
    What they also said was that if a state pensioner lives/moves abroad they may not be entitled to the annual increases.  So even if you have a UK bank account they may wish to check to make sure that you don't actually live abroad.  Let us hope they actually require cast iron proof of this or it could mean a lot of us having our pensions cut for no reason.
    sorry maisie_cat I delayed posting & didn't realise you already had.
  • PoGee
    PoGee Posts: 541
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    Hasn't the annual increase stoppage for pensioners living abroad been around for a while?
  • PoGee said:
    Hasn't the annual increase stoppage for pensioners living abroad been around for a while?
    Depends where they now live.
    Let's Be Careful Out There
  • Those who are sceptical will say that sometime in the future the pension will be means tested and the work place pension will be mandatory. The government will know exactly how much everyone has. 
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