Millions of people are set to have more money in their pockets from April when state pension rates are increased. The UK government is restoring the pension triple lock in April which will see rates rise in line with September's CPI figure of 10.1%.
The pension triple lock previously guaranteed that the basic and new state pension rates increase each April - the start of the new financial year - in line with the previous year's inflation figure. However, the lock was suspended by the UK government as the cost of living crisis caused inflation to rise over 10% last year, a 40-year high.
There had been fears the lock would not return, meaning pensioners faced a real-terms loss in income this year at a time when millions are struggling to afford food and heat their homes. But in his autumn statement in November Chancellor Jeremy Hunt said that he would be honouring the rule which will now result in older people set for an income boost from April 2023.
Read more: DWP benefits, minimum wage and energy prices: All the big money changes to look out for in 2023
It means around 12 million people in the UK currently in receipt of the full basic or full new state pension will see a rise in their payments for the 2022/23 year. Increases to both attendance allowance and pension credit, given to those of pension age who are also on low income, have also been confirmed by the Department for Work and Pensions.
Here is everything you need to know about how much state pension, pension credit and attendance allowance will increase from April. To get all the latest money-saving news straight to your inbox twice a week sign up here.
State pension
From Monday April 10 onwards anyone receiving the full new state pension will get an extra £19 a week while 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, up 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)
People need to have made at least ten years’ worth of National Insurance (NI) contributions to receive any form of state pension, and 35 years’ worth if they hope to receive the full amount.
Widow’s pension
Standard rate: £139.10 (increase from £126.35)
Attendance allowance
There are two rates of attendance allowance - the lower rate and the higher rate. These are calculated based on how much help is required, not any current help the person does or doesn’t get.
The 10.1% 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 on the UK government website here and sending it by post.
Pension credit
The Pension credit standard minimum guarantee will increase to £201.05 a week, up £18.45 for a single claimant, and £306.85, up £28.15 per week for couples.
Single: £201.05 (from £182.60)
Couple: £306.85 (from £278.70)
The online calculator can be used to check eligibility here or by calling the Pension Credit helpline on 0800 99 1234.
Pensioners are also receiving an additional cost of living payment of between £150 and £300 to help them pay their bills this winter. The money is given to those who qualify for the winter fuel payment, an annual, tax-free sum paid by the UK government to help those over the state pension age pay their heating bills during the coldest months. Most payments are made in November and December and in order to qualify for the winter fuel payment you must have been born on or before September 25, 1956 and also have lived in the UK for at least one day in the qualifying week, which for 2022/23 was between September 19 and 25, 2022. This includes those aged 66 or over who get any of the following:
- Attendance allowance
- Awards from the War Pensions Scheme
- Carers allowance
- Disability living allowance (DLA)
- Incapacity benefit
- Income support
- Income-based jobseeker's allowance (JSA)
- Income-related employment and support allowance (ESA)
- Industrial death benefit
- Industrial injuries disablement benefit
- Pension credit
- Personal independence payment (PIP)
- State pension
Payments are normally between £100 and £300, but the UK government announced last year that eligible claimants would receive between £150 and £300 additional cash depending on their circumstances. It means some people were entitled to up to £600 in total, including the winter fuel payment and pensioner cost of living payment. Find out more about that here.
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