Pensioners will be among those to benefit from a 10.1% increase on benefit payments. As of April 10, payments made by the DWP will see a slight boost as benefits are raised in line with inflation.
The rise in payments is aimed to help those who need it most cope with the rising cost of everyday items such as food and fuel. Other benefits will also be seeing an increase.
The move was announced by chancellor Jeremy Hunt in his Budget in November last year. It will cost the Exchequer £11billion.
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Pension credit
Pension Credit exists to support retirees on a low income. From April, the rates will rise as follows:
For those who are single, your income will be topped up to £201.04 instead of the current rate of £182.60.
For couples, it’ll be topped up to £306.85 as compared with the current rate of £278.70.
If your income is lower than this, you should be eligible for the benefit. Other top-up amounts for carers can be found here.
State pension
The new state pension rate will increase from £185.15 a week to £203.85. This is for those who reached state pension age on or after 6 April 2016.
For the old state pension, also called the basic state pension, the basic rate will rise from £141.85 to £156.18. People who are entitled to the old state pension may also be eligible for additional state pension payments, however, these are dependent on your earnings.
The DWP is also reminding people that the state pension is not paid automatically and instead it must be claimed. Pensioners will be sent a letter with instructions on how to claim around two months before reaching state pension age, which is currently 66 for both men and women.
If you do not claim your state pension, or if you do not want to claim it, then it is possible to defer it. If this is the case, you do not need to do anything as your pension will automatically be deferred until you claim it.
Deferring your state pension could increase the payments you get once you do decide to claim it. Any extra payments you get from deferring could be taxed.
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