Basic and New State Pension payments will increase next week by 10.1 per cent for some 12.6 million older people across the country, including around one million living in Scotland.
The uprating means that those on the full New State Pension will see payments increase from £185.15 to up to £203.85 each week and those on the Basic State Pension will see weekly payments rise from £141.85 to up to £156.20. It's important to be aware that the amount someone receives depends on the amount of National Insurance (NI) contributions they have made.
However, while the increase will help offset the ongoing cost of living crisis, it also means more older people may have to pay tax on their income. This is because someone with 35 years’ worth of NI contributions, on the Full New State Pension will receive £815.40 every four-week pay period, giving them an annual income of £10,600.20 - which leaves them just £1,969.80 of their annual Personal Allowance of £12,570.
