The DWP confirms state pension increases this April, benefiting millions of pensioners across the UK
London: The state pension is set to rise this April. This is thanks to the triple lock promise. It ensures pensions increase based on inflation, wage growth, or by 2.5%. Whichever is highest applies.
Chancellor Rachel Reeves announced the new rates. The state pension will increase by 4.1% due to wage growth. This means many pensioners will see a boost in their payments.
For those born on or after April 6, 1951, or April 6, 1953, the new state pension will rise by £9.10 weekly. This brings their total to £230.30 each week or £11,975 annually.
Older pensioners will see a smaller increase. Those born before those dates will get an extra £6.65 weekly. Their new total will be £176.45 weekly or £9,175 annually.
To receive the full new state pension, most need 35 qualifying years on their National Insurance record. Even ten years can qualify someone for a smaller amount.
Many pensioners might also face tax issues. The full state pension is nearing the current £12,570 tax-free allowance. This could lead to tax liabilities for some.
Rachel Vahey from AJ Bell commented on the situation. She noted that the state pension is close to the personal allowance. If this trend continues, it could create challenges for pensioners.
She suggested that the government may need to rethink how much the state pension should provide. This includes considering the age of eligibility and sustainable payment increases.
