Labour ministers could be eyeing up changing the eligibility rules for the state pension in efforts to keep the payments affordable.

Chancellor Rachel Reeves has already said there is a £22billion funding blackhole the Treasury needs to account for ande Prime Minister Kier Starmer has warned of a ‘painful’ Autumn Budget, raising concerns Labour could soon make the state pension less generous.

Chancellor Rachel Reeves could change the eligibility criteria for the state pension (Image: Getty)

Mike Ambery, retirement savings director at Standard Life, said: “The cost of the state pension as it stands is likely to increase further in the future.

“While the Government has committed to retaining the triple lock by which the state pension increases each year by the average increase in wages across the UK, inflation or 2.5 percent, there’s been no such commitment around what’s required to qualify for the state pension.”

Mr Ambery looked at the two options Labour may consider, of increasing the National Insurance years to get the full amount or increasing the state pension age, warning there are drawbacks to either measure.

He explained: “Increasing the number of years of National Insurance (NI) contributions people need to receive the full state pension could cut some expense.

“However there’s little evidence to suggest achieving the required amount of NI years factors heavily in people’s decision on when to retire, and some people in most need of the state pension might be unable to work for an additional five or 10 years leading to real hardship for some.

“The Government could also look to accelerate raising the state pension age which is already set to increase to 67 by 2028 and 68 by 2046 and it’s possible that it will change more quickly, and to a higher age, for affordability reasons.

“This would however have a disproportionate impact on the less well-off, who have lower levels of savings to bridge any gap between stopping work and the state pension kicking and often receive it for shorter periods due to shorter life expectancy.”

Labour may make changes to the state pension (Image: Getty)

Mr Ambery said that changing the triple lock to make the yearly increase to payments less generous raises a similar concern as poorer Britons who most rely on their state pension would be worse hit.

He said the Government could also look at boosting funding for the state pension by increasing National Insurance rates, or ending the salary sacrifice policy on pension contributions.

The pensions expert there are millions of people who will heavily rely on their state pension when they retire, which currently pays £221.20 a week for the full new state pension.

He warned: “We’ve seen some countries such as Australia means test the state pension, to focus on those who rely on it the most.

“Each measure would be unpopular and would impact the retirement plans of people across the wealth spectrum, as well as potentially increasing hardship in the years running up to and after retirement.

“It’s worth noting that even with the relatively high yearly increases as a result of the triple lock over the past two years, the state pension still falls short of the Pension and Lifetime Savings Association (PLSA) ‘minimum’ standard of living for a single pensioner, so it’s worth people currently working checking if their level of private pension savings look set to provide their desired standard of living in retirement.”

The PLSA suggests a single person needs at least £14,400 a year for a basic retirement while a couple need £22,400.

The full new state pension currently pays the equivalent of £11,502.40, so a state pensioner living on their own would need to find another £2,900 just to get by.