Millions of people across the country will see a rise in their Basic and New State Pension payments by 10.1% in April - but some may have to pay tax on their income.
Those on the full New State Pension will see payments rise 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. The amount a person receives depends on their National Insurance (NI) contributions.
But while the increase will help offset the ongoing cost of living crisis, it also means 500,000 more older people may have to pay tax on their income, reports the Daily Record. 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 Personal Allowance.
