The Department for Work and Pensions (DWP) will begin sending annual uprating letters to millions of people over State Pension age, confirming how much their payments will increase from April. The letters, issued to everyone aged 66 and over, detail the new weekly amounts for the New and Basic State Pension following the upcoming rise.
Most pensioners will see their payments increase by 8.5% from April 8. Those on the full New State Pension will receive £221.20 per week, up from £203.85, equating to £884.80 over a typical four-week payment period. Recipients of the full Basic State Pension will see weekly payments rise from £156.20 to £169.50, or £678 per four-week period.
During a parliamentary debate on the uprating order, Lord Davies noted that not all State Pension elements will rise by 8.5%. While the main rates increase in line with earnings, other components, such as additional State Pension and deferred pension increments, will rise by September's inflation figure of 6.7%. Lord Davies highlighted that many pensioners receive more than just the basic or new State Pension, and these extra parts are often overlooked.
The DWP is also urging low-income pensioner households in England, Scotland and Wales to check their eligibility for Pension Credit. A successful new claim made by March 5, 2024, will also qualify for the £299 cost of living payment. Pension Credit can be backdated up to three months, meaning an application before the deadline would cover the qualifying period from November 13 to December 12, 2023.
Around 880,000 pensioners who could claim Pension Credit are missing out, potentially losing an average of £3,900 per year. The benefit tops up income to at least £201.05 per week for single pensioners and £306.85 for couples, rising to £218.15 and £332.95 respectively from April. Pensioners can check eligibility online via the GOV.UK calculator or call the Pension Credit helpline on 0800 99 1234.
