- Foxmain Associates
State pension payments set to rise
Payments will rise for millions of retirees in the next few weeks when new rates come into force across England and Wales.
The new financial year will bring new rates for millions of taxpayers, Universal Credit claimants and those on the state pension.
The Department for Work and Pensions confirmed last year that pensioners will see their incomes rise by 2.5% as the new tax year kicks in.
However, the overall amount you will receive will depend on your national insurance credits.
The new financial year will bring new rates for millions of retirees this month, when new rates come into force across England and Wales.
The Department for Work and Pensions (DWP) - which sets the rates - said pensioners will see their incomes rise by 2.5% as the new tax year kicks in.
The "triple lock" is designed so that it rises with wages, inflations the previous September, or 2.5% whichever is the highest. This year, wage inflation fell, and inflation was 0.5% in September, so pension are rising by 2.5%.
State pension recipients who are entitled to the full level of new single-tier state pension will get £179.60 per week from 12 April 2021, and increase of £4.40 on the current rate of £175.20. This equates to an extra £17.60 a month and £228.80 for the 2021/22 financial year.
Those who reached state pension age before April 2016 receive the basic state pension. At its full level this is worth £137.60 per week, up from £134.25. This increase equates to an extra £13.40 per month or £174.20 for the 2021/22 financial year.
However, the overall amount you receive at retirement will depend on your national insurance credits. To qualify for the full amount, you need to have amassed 35 credits over your working life - that's 35 years of work. For the full basic state pension, you need 30 qualifying years.