As costs continue to rise across the board many people have already tightened their belts as far as they will go. Many are now looking at ways to bring in extra income - but that isn't always easy if you are one of the older members of society.
Pensioners are often some of the most vulnerable people and extra income would be a massive benefit to help them stay warm and be able to eat. The State Pension is set to rise in the spring - but will it be enough to make a difference.
The Express has taken a close look at how much it will increase in April. It has also checked out what people can expect to get if they are on Pension Credit and Attendance Allowance.
All will go up by 10.1% which means millions of people will see a bigger amount dropping into their bank accounts. This is how the figures will change.
State Pension
The full new state pension will go up by £19 a week from Monday April 10. Anyone who reached state pension age before April 2016 (and is in receipt of the full basic state pension) will get an extra £14 weekly.
That takes the former to £10,600 a year or £203.85 per week for 2023/24, from £185.15 in the last financial year, and the latter to £8,100 a year or £156.20, up from £141.85.
Full New State Pension: £203.85 (from £185.15)
Basic Old State Pension (Category A or B): £156.20 (from £141.85)
It should be noted that to receive any form of state pension, people need to have made at least 10 years’ worth of National Insurance (NI) contributions and 35 years’ if they hope to receive the full amount.
Widow’s Pension
Standard rate: £139.10 (increase from £126.35)
Attendance Allowance
Attendance Allowance is paid at two rates, the lower rate and the higher rate.
The amount eligible claimants receive is calculated based on how much help is required, not any current help the person does or doesn’t get.
The 10.1 percent payment boost means people on the lower rate will see their payments increase to £68.10 while the upper rate will increase to £101.73.
Pensioners will therefore get between £247.40 and £406.92 every four weeks.
Higher rate: £101.75 (from £92.40)
Lower rate: £68.10 (from £61.85)
Individuals can apply for Attendance Allowance by filling in the claim form, available on the Government website, and then sending it off in the post.
Pension Credit
The Pension Credit standard minimum guarantee will meanwhile also increase by 10.1 per cent in line with CPI inflation, taking its amounts to £201.05 a week, up £18.45 for a single claimants and £306.85, up £28.15 per week for couples.
Single: £201.05 (from £182.60)
Couple: £306.85 (from £278.70)
People can check their eligibility for Pension Credit using the online calculator or by calling the Pension Credit helpline on 0800 99 1234.
Pension Credit can act as a gateway benefit as people qualify for other things such as:
- Housing Benefit if they rent the property they live in
- Support for Mortgage Interest if they own the property they live in
- Council Tax discount
- Free TV licence if they are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with their heating costs through the Warm Home Discount Scheme
- A discount on the Royal Mail redirection service if they are moving house.
Eight million pensioner households will also get a £300 Cost of Living payment in late 2023.
The £300 payment will be made on top of Winter Fuel payments, which in late 2022 were made to nearly every pensioner who turned 66 born before September 26, 2022.
In winter 2023/2024, the Winter Fuel and Cost of Living Payments are expected to be made to those who reach the state pension age before September 25, 2023.
That means most people born before September 25, 1957 will get Winter Fuel Payments plus an extra £300.
The amount paid in Winter Fuel Payments can vary depending on who the person lives with, their age and if they claim any benefits other than a pension, but the £300 Cost of Living Payment is the same for everybody who qualifies.
The DWP said: “Exact payment windows will be announced closer to the time but the 2022/2023 payments were made from November, so expect a similar timescale in Winter 2023/2024.”
