1 week Ago By [email protected] (James Rodger, Tom Kershaw)
Three policy alterations from the Department for Work and Pensions are coming into effect this week for those who receive the state pension. As part of a DWP overhaul, both the old and new state pension rates will see an increase, and there will also be a rise in Pension Credit. This month, state pension payments will increase in line with the announced wage growth of 4.
1 per cent. However, the actual additional amount you will receive depends on several factors, including the type of state pension you claim and your National Insurance record. Those on the full, new flat-rate state pension (for Brits who reached the state pension age after April 2016) will experience an annual increase of £472 - while those on the old basic state pension (for those who reached the state pension age after April 2016) will receive a smaller increase of £363.
Generally, you will need 35 years of qualifying National Insurance contributions to be eligible for a full state pension. Recipients of the new state pension will see their weekly payments of £221.20 rise to £230.
30. Similarly, those on the older basic state pension will see their weekly payments change from £169.50 to £176.
45. In addition to the two state pension rate changes, pensioners will also benefit from an uplift in Pension Credit, reports Birmingham Live . Individuals earning less than approximately £218 per week (or £235 for a couple) who are above retirement age may also be eligible for Pension Credit in addition to the basic state pension.
It is estimated that an astonishing 425,000 people over the age of 75 qualify for this benefit but are not currently claiming it. Pension Credits will also rise by 4.1 per cent, boosting your weekly income to £227.
10 if you're single and £346.60 if you have a partner. This equates to an increase of £465 and £710 respectively.
Savings and investments of £10,000 or less will not affect your Pension Credit. However, if you exceed this threshold, every additional £500 will be considered as £1 income each week. For instance, if you have £11,000 in savings, this will be counted as £2 income per week.
Get all the latest money stories from Yorkshire Live straight to your mobile via WhatsApp by clicking here . Whether it's the latest DWP announcements, pensions changes or the latest offers and discounts, you'll get it all. If you don’t like our community, you can leave any time.
We also treat members to special offers, promotions, and adverts from us and our partners. Read our privacy notice here ..
