There are a number of key changes happening to state pensions over the next few weeks.
Every year April sees the start of a new tax year meaning that many peoples' finances see a bit of a shake up. State pensions are not exempt from adjustments and this year there will be six main changes to the benefit.
Some changes will affect everyone, while others are specific to groups such as married women and the over-80s. But for many the state pension is their primary source of income so it may be a worrying time.
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Changes are coming for those in receipt of the state pensions in the next month and the Express has looked at what's to come.
State pension triple lock
The first key change for Britons to make note of is the return of the state pension triple lock. The mechanism was temporarily suspended last year, due to warped earnings data as a result of Covid-19, meaning the Government deemed a predicted eight percent rise as un-affordable.
However, this was only intended to be temporary, and the triple lock will return from April 2023 onwards. Pensioners can expect a 10.1% rise in line with September 2022’s CPI inflation figure. The triple lock ensures the state pension rises each year by whichever is the highest of 2.5%, inflation or average earnings.
New state pension
The second change, as a result of the triple lock’s return, is the rise of the new state pension. The full new state pension is currently worth £185.15 per week, but this will rise to £203.85.
People are eligible if they are a woman born on or after April 6, 1953, or a man born on or after April 6, 1951. To get any new state pension, Britons typically need 10 qualifying years of contributions, rising to 35 for those who want to secure the full sum. Some may get less than the full new state pension if they were contracted out before April 6, 2016.
Basic state pension
Another change to make note of is an increase to the basic state pension - the older scheme. The full old state pension will rise from £141.85 to £156.20 per week for eligible people.
It is available to those who retired before April 6, 2016, the Government has confirmed. For the full basic state pension, individuals usually require some 30 qualifying years of contributions.
Married Woman’s Pension
The fourth change relates to the Married Woman’s Pension - a type of the basic state pension. Under the old scheme, women could derive payments from their spouse or civil partner’s National Insurance contributions. The sum is worth 60 percent of the basic state pension rate, and the DWP has confirmed this will rise from £85.00 to £93.60 per week.
Over-80s pension
In addition, another change relates to the over-80s state pension. Individuals cannot get the over 80 pension if they reached state pension age on or after April 6, 2016, but for older people, this could be particularly useful.
Eligibility is not based on the National Insurance contributions one has made. The Over 80 state pension is intended for those who receive a basic state pension of, currently, less than £85 a week, or nothing at all. The rate is set to rise from £85 per week to £93.60 a week in the forthcoming tax year.
Additional state pension
The final important change to kick in next month relates to the Additional state pension. There is currently no fixed amount for this sum, and what a person gets is usually dependent on how long they paid National Insurance for, their earnings, and whether or not they were contracted out.
However, the maximum sum people can receive is set to change from April 2023. It will increase from £185.90 to £204.68 per week for eligible individuals.
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