State pension means-tested proposal slammed as 'scaremongering'

Sir Edward Troup, a former executive for HM Revenue and Customs (HMRC) who has been advising Shadow Chancellor Rachel Reeves, called for means-testing.

If a person or household is in receipt of a means-tested benefit, their income and savings is taking into account to determine whether they are eligible.

In an interview with LBC, Troup asserted that pensioners should "contribute possibly more" to the tax man.

He explained: "My generation, the pensioners' generation, if they've got income, if they've got means, should be contributing at least as much, and possibly more than those people who are working, bringing up families and are really contributing now to that country.'"

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However, a ex-DWP worker has hit back at this proposal and explained why means-testing the state pension is likely not at an option.

Speaking to the Daily Record, the unnamed employee highlighted the benefit's annual uprating is more likely to change instead.

They explained: "What is overlooked is the fact that people pay cash into the State Pension scheme in the form of Voluntary Contributions.

"So you are not going to pay cash into a scheme unless you are entitled to the payment of that benefit.

“If the state pension was means-tested, HMRC would have to refund Voluntary Contributions to those members of the public, who had paid them, but were not entitled to the payment of state pension.”

As it stands, Britons need to have 35 years of National Insurance contributions under their belt to claim the full, new state pension.

According to the former DWP worker, HMRC would not be refunding previous contributions if the state pension was means-tested.

They also cited the the difficulty to calculate the difference in refunds for those claiming either the old or new state pension.

Under the current DWP system, those claiming means-tested retirement benefits such as Pension Credit have to report any changes to their circumstances that night affect their claim.

If the state pension were to become means-tested, millions of pensioners would be in the same predicament which would be difficult for the Government to implement, the ex-DWP employee claims.

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She explained: "At least with the state pension, you receive what you are entitled to, know exactly how much money you have coming in a month and there is less likely to be any overpayment.

“To mention means-testing the state pension may cause concern for some people, particularly when their state pension may be their main source of income, but for the reasons mentioned above, it is highly unlikely that the government would be actually able to means-test it.”

The former Government worker has written to Chancellor Rachel Reeves over the "scaremongering" question.