UK State Pensioners are set to see their income rise from April as new payment rates come into play.
The State Pension traditionally sees an increase at the start of each new tax year on April 6, with the uplift determined by three factors - the 'triple lock'. The highest figure from either the consumer price index (CPI) measure of inflation (based on September's data from the previous year), average wage growth between May and July of the preceding year, or a flat rate of 2.5%, is used to calculate the new pension rates.
This year, both the basic and new State Pensions will be uprated by 4.1%, in line with the annual increase in the average weekly earnings index for May to July 2024.
Given that the State Pension system operates two schemes - basic and new - the amount your pension payments will rise from April 6 depends on when you retired, reports the Express.
Basic State Pension
Men born before April 6, 1951, and women born before April 6, 1953, are eligible for the basic State Pension and will witness their pensions rise by 4.1% from £169.50 per week to £176.45 - a weekly boost of £6.95.
This equates to an additional £360 over a year added to your pension pot, assuming you receive the full rate. It means those on the full new rate will pocket £9,175.40 in pension payments over a full year from April 6, 2025.
To qualify for the full amount of the State Pension, you need a certain number of qualifying years of National Insurance contributions. For men born between 1945 and 1951, this is typically 30 qualifying years, or 44 if you were born before 1945.
Women require 30 qualifying years if they were born between 1950 and 1953, or 39 if they were born prior to 1950. If you have fewer than the required number of qualifying years, your basic State Pension will be less than £176.45 per week.
New State Pension
The New State Pension applies to men born on or after April 6, 1951, and women born on or after April 6, 1953. You can claim this once you reach the State Pension age, currently set at 66.
From April, those claiming this pension will see their payments increase by 4.1%, with the full rate rising from £221.20 per week to £230.25. Over a year, this equates to an extra £470 in your pension pot, assuming you receive the full rate.
This means that those on the full new rate will receive £11,973 in pension payments across a full year from April 6, 2025 - £2,797.60 more per year than those who get the full basic State Pension.
Pension Credit
Pension Credit 's standard minimum guarantee is also increasing by 4.1% from April 6. This benefit provides additional funds to those over the State Pension age and on a low income to assist with living costs.
Currently, individuals and couples on Pension Credit receive a top-up to their weekly income – £218.15 for singles and £332.92 for those with partners. However, from April, there's good news as the rates are set to increase.
Singles will see their weekly amount go up to £227.10, while couples will enjoy a rise to £364.60.
This means an additional £8.95 per week for single claimants and a £31.65 boost for joint claimants.
Annually, this adjustment translates to an extra £465.40 for single pensioners and a significant £1,645.80 for couples.
The government has expressed its commitment to supporting retirees by stating: "To help make sure pensioners are protected in their retirement, we have also confirmed a 4.1% increase to the basic and new State Pension, as well as the standard minimum guarantee for Pension Credit, from April next year.
"Over 12 million pensioners will benefit as the full new State Pension will rise from £221.20 to £230.25 a week, providing an extra £470 a year. The full basic State Pension will increase from £169.50 to £176.45 per week, worth an extra £360 annually."
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