Millions of pensioners will receive much needed rises in their weekly payments at the start of next month. In just a few days, as the new financial year starts, Pension Credit, State Pension rates and the Additional State Pension will all be boosted.
As reported by Leicestershire Live, there are around 12.5million state pensioners in the UK with an estimated 1.7million of them living in poverty, so the Department for Work and Pensions (DWP) rate rises will benefit a large number of people. The uprating comes as chancellor Jeremy Hunt has abolished the lifetime pension allowance, meaning savers will not have to pay any tax on their pension pots when it reaches the previous allowance of £1.07million.
Meanwhile, concerns that the State Pension Age increase to 68 could be sped up have now been shelved, after reports claimed the Conservative Government backed down from their plans. It has been said the Tories could not make such an unpopular move while battling Sir Keir Starmer's Labour Party and that it will have to wait until after the next General Election.
Read more: State Pension: More than half of workers fear they will never be able to retire
Pension Credit
Pension Credit is going up in April 2023 for both those who are single or in a couple. Pension Credit gives you extra money to help with your living costs if you're over State Pension age and on a low income, topping it up to a minimum level.
From April, the standard minimum guaranteed income for a single person on Pension Credit will go from £182.60 to £201.05 per week. For couples, it will rise from £278.70 to £306.85 a week.
New State Pension
As a result of the triple-lock returning, millions will see their DWP payments increase in the coming days. The full new State Pension is going from £185.15 per week to £203.85 in April 2023.
People are eligible if they are a woman born on or after April 6, 1953, or a man born on or after April 6, 1951. To receive any new State Pension, you need to have at least ten qualifying years on your National Insurance record. To receive the full new amount, you need 35 years.
Basic State Pension
The Basic State Pension is paid to those who retired before April 6, 2016 and to receive the full amount, you typically need 30 years of National Insurance contributions. Just as the new State Pension is going up, so is the basic payment. The full old state pension will rise from £141.85 to £156.20 per week for eligible people in April.
Additional State Pension
If you're on the basic State Pension and a man born before April 6, 1955 or a woman born before April 6, 1953, you may be able to claim the Additional State Pension. This is a payment which tops up your weekly pension and it is usually worked out from your National Insurance record and earnings. From April, the maximum sum people can receive will increase from £185.90 to £204.68 per week.
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