People across the UK will see the biggest-ever boost to state pension payment on Easter Monday, but millions will miss out on getting the full amount. The State Pension has been given a 10.1 per cent increase after the triple lock was kept in place.
The triple lock determines annual rises by the largest of three factors: inflation, wage growth or 2.5% then whichever of the three is the highest. The UK inflation rate was 10.1% in January, much higher than wage growth, hence the 10.1% increase.
For those on the new State Pension, there will be an increase from £185.15 per week to £203.85 per week., reports BirminghamLive. As these payments are usually paid out every four weeks, people will see a new amount of £815.40 a month going into accounts.
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However, just 23% of people who draw state pension are on the new state pension. The remaining 9.7million (77 per cent) get the old basic State Pension that was in place before April 2016. This pays out £141.85, going up to £156.20 from April 10. Paid every four weeks, it will see £624.80 go into accounts - almost £200 less per month than the new pension.
There are other variations that can mean a person gets less than these figures. That's because you need 35 qualifying years of National Insurance contributions to get the maximum new State Pension. You need 10 qualifying years to get any pension at all.
Lower amounts of National Insurance paid into the system by many workers mean the average new State Pension for a man is £175.84, while for a woman it's a similar but slightly lower £170.52.
For the old basic State Pension, if you're a man you usually need 30 qualifying years if you were born between 1945 and 1951, and 44 qualifying years if you were born before 1945. And if you're a woman you usually need 30 qualifying years if you were born between 1950 and 1953, and 39 qualifying years if were born before 1950.
The average amount of the basic State Pension is £178.60 for a man and £152.12 for a woman. There have been calls for the Goverment to equalise the new and old State Pension amounts, with campaigners saying those on the earlier scheme are treated like second-class citizens.
How much pensions are going up
New State Pension
- Full rate - increasing from £185.15 to £203.85
Old State Pension
- Category A or B basic pension - increasing from £141.85 to £156.20
- Category B (lower) basic pension (spouse or civil partner's insurance) - increasing from £85 to £93.60
- Category C or D (non-contributory) - increasing from £85 to £93.60
Additional pension
- Maximum additional pension (own + inherited) - increasing from £185.90 to £204.68
Widow's Pension
- Widow's pension standard rate - increasing from £126.35 to £139.10
Pension Credit
Standard minimum guarantee
- single - increasing from £182.60 to £201.05
- couple - increasing from £278.70 to £306.85
Additional amount for severe disability
- single - increasing from £69.40 to £76.40
- couple (one qualifies) - increasing from £69.40 to £76.40
- couple (both qualify) - increasing from £138.80 to £152.80
Additional amount for carers
- Increasing from £38.85 to £42.75
Savings credit
- threshold single - increasing from £158.47 to £174.49
- threshold couple - increasing from £251.70 to £277.12
- maximum single - increasing from £14.48 to £15.94
- maximum couple - increasing from £16.20 to £17.84
Children
- First child born before April 6 2017 - increasing from £66.85 to £72.31
- Subsequent children - increasing from £56.35 to £61.88
- Disabled child lower rate - increasing from £30.58 to £33.67
- Disabled child higher rate - increasing from £95.48 to £104.86
When are pensions paid?
Any State Pension payments due in accounts on Easter Monday itself should instead have gone in on Thursday, April 6, the last full working day before the bank holiday weekend.
These are the normal payment dates for the State Pension:
| Last 2 digits of your National Insurance number | Payment day of the week |
|---|---|
| 00 to 19 | Monday |
| 20 to 39 | Tuesday |
| 40 to 59 | Wednesday |
| 60 to 79 | Thursday |
| 80 to 99 | Friday |
Minister for Pensions Laura Trott said: "We’re delivering the biggest State Pension increase in history and boosting Pension Credit for those on the lowest incomes, ensuring pensioners across the country are protected – now and in the future.
"Thanks to the Triple Lock, for the first time ever the full rate of the New State Pension will be over £10,000 per year, while the Basic State Pension will be over £3,050 a year higher than in 2010, making a real difference to the lives of over 12 million pensioners. Making sure that pensioners’ incomes and those of households across the country are protected in difficult times are marks of a compassionate Government – delivering for the British people."
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