Key changes to the state pension are taking effect over the coming years
HMRC has set out the tax rules relating to state pension payments. The update comes after an enquiry regarding the deductions applied to payments.
A state pensioner reached out to the tax authority via social media with a question. They asked: “Where can I find a monthly statement of my state pension showing the payment and deductions?” Now is an ideal time to review your state pension payments.
The state pension is set to rise by 4.8 per cent from April, boosting the full new state pension from £230.25 per week to £241.30 per week. In response to the query, HMRC outlined the key rules to bear in mind. The group told the taxpayer: “State pension is paid by the Department for Work and Pensions (DWP) and no tax is deducted at source.
“Your pension payments do appear only on your bank statements – DWP pays the same amount every four weeks.”
This means those receiving the full new state pension will receive £965.20 each payment period under the new rates.
Those on the full basic state pension will receive £184.90 per week, or £739.60 every four-week payment period, with payments typically issued in arrears.
The precise day your state pension is paid depends on the final two digits of your National Insurance (NI) number.
Here is how it works:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Those preparing for retirement should be aware of another significant change taking effect from April 2026. The state pension age is rising from 66, increasing gradually to reach 67 between April 2026 and April 2028.
Legislation has also been put on the books for another rise to 68, scheduled between 2044 and 2046.
You can check your projected state pension entitlement using the forecast tool available on the Government website.
