Pension

Record £815 state pension boost kicks in tomorrow but millions will miss out


Tomorrow brings the biggest ever boost to pensioners’ payments in an Easter Monday windfall. A 10.1 per cent increase has been announced in the state pension, in line with the Government’s triple lock policy.

It means payments go up by whichever measure is greater out of 2.5 per cent, inflation and wage growth. And it is no surprise to know that skyrocketing inflation represents the biggest percentage increase.



And that means people on the new state pension will see their payments shoot up from £185.15 to £203.85 a week. With the cash usually arriving once every four weeks, the hike will see £815.40 landing in accounts each month.

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But of the 12.6million people drawing a State Pension, only 2.9million (23 per cent) are on the new State Pension. The remaining 9.7million (77 per cent) get the old basic State Pension that was in place before April 2016. This pays out £141.85, going up to £156.20 from April 10. Paid every four weeks, it will see £624.80 go into accounts – almost £200 less per month than the new pension.

There are other variations that can mean a person gets less than these figures. That’s because you need 35 qualifying years of National Insurance contributions to get the maximum new State Pension. You need 10 qualifying years to get any pension at all.

Lower amounts of National Insurance paid into the system by many workers mean the average new State Pension for a man is £175.84, while for a woman it’s a similar but slightly lower £170.52.





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