April will mark the start of the new tax year, when various changes will take place affecting people's finances. Those receiving some kind of State Pension from the Department for Work and Pensions (DWP) should be aware of a number of important developments.
While households across the UK will be concerned about the prospect of bills going up next month, some help will come from the fact that pensions and benefits are set to rise. For the millions who rely on the State Pension – some as their main source of income – the announcement last year that the triple lock would be reinstate came as a huge relief.
The policy means retirees will see their payments rise from April, helping them to cope with the soaring cost of living. There will also be changes specifically affecting certain groups, such as married women and those over 80, the Express reports.
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Triple lock reinstated:
The State Pension triple lock is a policy that ensures the State Pension rises each year in line with whichever is highest out of inflation, average wage growth and 2.5 per cent. It was temporarily suspended last year, as wage growth was far higher than normal due to the economy bouncing back after the removal of Coronavirus restrictions.
Throughout 2022, there was uncertainty as to whether the policy would be reintroduced for the 2023/24 tax year, with the Government position appearing to change regularly amid political chaos that saw three different Prime Ministers in a matter of months. But pensioners were finally able to breathe a sigh of relief when the Chancellor Jeremy Hunt announced that the triple lock would indeed be coming back.
It means pensioners can expect a 10.1 per cent rise in payments from April, in line with September 2022's CPI inflation figure. Below are explanations on what that means for different types of pension.
1. New State Pension:
The new State Pension is currently worth £185.15 per week but this will rise to £203.85 in April. You generally need to have at least 10 years of National Insurance (NI) contributions to get any State Pension, and 35 to secure the full sum.
People qualify if they are a woman born on or after April 6, 1953, or a man born on or after April 6, 1951. If you reached State Pension age before 6 April 2016, you will instead get the basic State Pension.
2. Basic State Pension:
If you receive the basic State Pension, your payments will also be rising in April. The weekly payment will rise from £141.85 to £156.20 next month.
It is for people who retired before April 2016. Retirees generally need 30 qualifying years of NI contributions to get the full amount.
3. Married Woman's Pension:
The Married Woman's Pension is part of the basic State Pension. It allows women to get payments based on their spouse or civil partner's NI contributions.
The money is worth 60 per cent of the basic State Pension rate. The DWP has confirmed that from April it will rise from £85.00 to £93.60 per week.
4. Over-80s pension:
This is payment for people who are 80 or older who either get a basic State Pension of less than £85 a week, or get none at all. For those who don't get any basic State Pension, the over-80 pension can give them £85 a week, while for those who get some, it will top them up to this amount.
But from April, the amount you can get will rise to £93.60 a week. Eligibility is not based on NI contributions.
5. Additional State Pension:
This is an extra amount of money you could be paid on top of the basic State Pension, if you are a man born before 6 April 1951 or a woman born before 6 April 1953. Eligibility depends on how long you have been working and whether you chose to top up your State Pension.
The money is paid automatically to those who qualify. From April 2023, it will rise from £185.90 to £204.68.
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