This article explains the upcoming changes to state pension payments in 2025, highlighting the two-tier system where some pensioners will receive a 4.1% increase while others will see a smaller 1.7% rise. It focuses on the impact for those on the old state pension, clarifying the difference in increases for the basic pension and additional benefits like graduated retirement benefits and the additional pension (SERPS). The article also provides guidance on calculating the new pension amount and mentions other benefits like attendance allowance, which will also increase by 1.7%.
For those on the old state pension, some of it will rise by 4.1 per cent. However, the rest will rise by a smaller amount
Most of those on the old state pension get extras – a few pounds a week of what is called graduated retirement benefit based on earnings between 1961 and 1975. Instead, they will all increase in line with the rate of inflation last September which, as I said, was 1.7 per cent.Overall, it may typically be somewhere between 3 per cent and 3.5 per cent depending on the extras they get. And in your case you will also have the extra 25p a week paid to those over 80. That has never risen since it was introduced in 1971 when the basic pension was just £6 a week. Nowadays you would need to save it up for seven weeks to buy one first class stamp.
STATE PENSION RETIREMENT INCREASES INFLATION FINANCE
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Petition Calls for Abolition of Basic State Pension in Favor of New State PensionA Parliament petition urging the Labour government to abolish the Basic State Pension and transition all beneficiaries to the New State Pension is gaining traction. Campaigners advocate for an increase in the New State Pension aligned with a 'good percentage of average earnings'.
Read more »
State Pension and Pension Credit Payment Dates Changed for New YearOlder people receiving State Pension or Pension Credit will see changes to their payment dates over the New Year period due to bank holidays and office closures.
Read more »
State Pension to Rise by £473 per YearThe UK state pension is set to increase significantly from April 7, 2024, with pensioners receiving an additional £473 per year. This rise is in line with the government's commitment to ensure pensioners' incomes keep pace with the rising cost of living.
Read more »
State Pension to Rise by 4.1% in April, Pensioners Urged to Check EntitlementThe State Pension is set for a 4.1% increase in April, with pensioners urged to check their entitlement to additional financial support. Letters will be sent out in March detailing the new payment amount, including information about Pension Credit which could boost income by an average of £4,200.
Read more »
State Pension Payments to Rise by 4.1% in 2025/26New figures from the Department for Work and Pensions (DWP) reveal that State Pension payments will increase by 4.1% on April 7, 2025, under the Triple Lock earnings growth measure. This affects both the New State Pension (post-April 2016) and the Basic (or Old) State Pension (pre-April 2016). The DWP has also published the proposed new payment rates for the 2025/26 financial year, showing increases for both full New and Basic State Pension recipients. Additionally, other benefits, including working age and disability benefits, will rise by 1.7% based on the September Consumer Price Index (CPI) inflation rate.
Read more »
State Pension Payments to Rise by 4.1% in April 2025New figures from the Department for Work and Pensions (DWP) reveal that 12.9 million people in the UK are currently claiming the State Pension. The DWP recently announced a 4.1% increase for both the New and Basic State Pension, starting April 7, 2025, aligning with the earnings growth measure of the Triple Lock. Additionally, the Basic State Pension will increase by £6.95 per week, while the New State Pension will rise by £9.05 per week. These increases will be reflected in the 2025/26 financial year.
Read more »