The Chancellor confirmed last year that state pension payments will be boosted by wage growth which sat at 4.1% – however, there are two types of state pensions which means not everyone will get the headline figure of £470
Millions of state pensioners will not see their Department for Work and Pensions (DWP) payments rise by over £470 next month.
From April 6, UK-based pensioners will see their state pensions rise by 4.1% under the triple lock promise. The state pension is subject to an annual rise each year under the promise as it ensures that payments increase by either inflation (based on the previous September’s figure), wage growth (average increase between May and July), or 2.5% – whichever is the highest.
The Chancellor confirmed last year that state pension payments will be boosted by wage growth which sat at 4.1%. However, there are two types of state pensions, each of which pays different amounts. This means not everyone will get the headline figure of £470.
In the UK, you can either get the old basic state pension or the new one. Men born on or after April 6, 1951, or women born on or after April 6, 1953, can claim the new state pension. While, those born before these dates can claim the older basic state pension.
The basic state pension will increase from £169.50 to £176.45 per week, while the full new state pension will rise from £221.20 to £230.30 per week. This is a weekly uplift of £9.10, or £474.85, over the course of a year, going from £11,541.90 to £12,016.75.
Over the year, the basic state pension will be rising from £8,844.30 to £9,206.95 which is a weekly uplift of £6.95 or £362.65 a year. It means older pensioners on just the old-style state pension with no additional amounts will get £110.25 less a year from next month.
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That said, those on the old state pension can still get more than £169.50 a week if they qualify for additional state pension. For example, those that were part of the State Earnings-Related Pension Scheme (SERPS), which ran between 1978 to 2002.
However, it’s also important to note that your exact state pension amount depends on your national insurance record. Most people need 35 qualifying years on their National Insurance record for the new state pension to receive the full amount, and typically ten years to get anything at all.
Caroline Abrahams CBE, charity director at Age UK said: “Many people believe that all pensioners receive the same amount of state pension, but that’s not the case. Only pensioners in receipt of the full rate of the new state pension will receive the maximum increase in their state pension this year. This means around one in four (3.1m) pensioners in Great Britain will receive the maximum increase in their State Pension in April 2025, and conversely, three in four (9.8m) pensioners will receive less than this amount.”
The new state pension is usually paid every four weeks into an account of your choice. The state pension rise will come in from the first Monday of the next tax year – which this year is Monday, April 7. The new tax year starts on Sunday, April 6. Pensioners are paid in arrears for the previous four weeks – which is why April’s payment increases won’t be paid in full until May.
The DWP applies the same approach each year, meaning that people receive the same rates of the state pension for an equal number of weeks, regardless of their payday. Under the DWP rules, the day your state pension is paid depends on your national insurance number, which is specifically the last two digits and it follows:
- Paid on Monday – 00 to 19
- Paid on Tuesday – 20 to 39
- Paid on Wednesday – 40 to 59
- Paid on Thursday – 60 to 79
- Paid on Friday – 80 to 99
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