State Retirement Pensions
The question
To ask the Secretary of State for Work and Pensions, what the total annual administrative cost was of implementing the 25p weekly age addition to the state pension for recipients over 80; and whether this cost exceeds the total amount paid out in such additions.
Answered by Torsten Bell
The Age Addition is designed to be simple to administer. Payments are made automatically as part of the person's ongoing State Pension entitlement. The administration costs are therefore negligible.
In 2024, 474,239 letters were issued to inform people that they were now entitled to the Age Addition, costing £278,030 in printing and postage. In 24/25, the annual cost of the 25p Age Addition to the State Pension for those eligible 80+ is estimated to be £50.8m. Administrative costs therefore do not exceed the total amount paid.
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