The state pension increases every year in line with the triple lock, which guarantees a rise based on whichever is highest out of earnings growth, inflation in September, or 2.5%
The state pension is rising by 4.8% from today in a boost for millions of older Brits.
The state pension increases every year in line with the triple lock, which guarantees a rise every April based on whichever is highest out of earnings growth in between May to July, inflation in September, or 2.5%.
For this year, wage growth was the highest at 4.8%. Those receiving the full new state pension will see an annual increase of £575.
The full new state pension is rising from £230.25 a week to £241.30 a week (£12,547.60 a year) from today.
However, millions of pensioners are being dragged closer into paying tax on their state pension income for the first time.
The new full state pension is only just below the personal allowance, which is the amount you can earn before you start paying tax and is set at £12,570.
In her Budget, Chancellor Rachel Reeves revealed people who are “only in receipt of the basic or new state pension” will not have to “pay small amounts of tax through Simple Assessment”.
But no further details have been announced about how this will work yet. The old basic state pension will rise from £176.45 a week to £184.90 a week (£9,615 a year).
These are the full amounts of state pension that you can get – you may get less depending on your National Insurance record.
You get the new state pension if you’re a man born on or after April 6, 1951, or if you’re a woman born on or after April 6, 1953.
For the new state pension, most people need 35 qualifying years on their National Insurance record to get the full amount.
You claim the older basic state pension if you’re a man born before April 6, 1951, or a woman born before April 6, 1953.
The number of qualifying years you need for the full amount varies depending on when you were born and your gender.
For example, men born before April 6, 1945 need 44 years of National Insurance contributions, while men born between 1945 and 1951 need 30 years.
The state pension age is currently set at 66 for men and women but is now gradually increasing to age 67.
The first people that will be impacted are those born between April 6, 1960 and May 5, 1960. Anyone born between these dates will not be able to claim their state pension until they are aged 66 and one month.
The state pension age will gradually keep increasing by one month until it eventually reaches 67 – with the process set to be complete by April 2028.
