State Pension rates are set to go up by 4.1% from next month – here’s the fill list of increases
Many different DWP benefits are set to rise from next month, including State Pension and Universal Credit. Every year rates go up in line with the rate of inflation from the previous September.
In September 2024 this was confirmed as being 1.7%, according to the consumer price index. However, the State Pension increases by whichever is highest out of inflation, wages based on average growth between May and July, or 2.5% – known as the triple lock promise.
This year State Pension levels will rise by 4.1% in line with average earnings growth. Other benefits set to increase next month include Universal Credit, Child Benefits, and Disability Living Allowance.
State Pension is separate from Pension Credits – you can get Pension Credits even if you have other income, savings or own your own home.
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The amount of State Pension you receive depends on your National Insurance record – the current full rate of State Pension is £221.20 a week. In general, your amount could be different depending on:
- if you were contracted out before 2016
- the number of National Insurance qualifying years you have
- if you paid into the Additional State Pension before 2016
If you’re getting less than £221.20 a week, you might need more National Insurance qualifying years to increase your State Pension – but be quick because the deadline to boost your State Pension through National Insurance contributions is April 5.
If your National Insurance record started before April 2016, you may have been contracted out. While you were contracted out, you or your employer would have paid more into your workplace or private pension and less into your State Pension.
You will usually need more than 35 qualifying years to get the full rate of the new State Pension if you were contracted out. And if your National Insurance record started after April 2016 you will need 35 qualifying years to get the full rate of the new State Pension.
If you’re getting more than £221.20 a week, you paid into the Additional State Pension before 2016, and would have got more State Pension under the old rules, you’ll get a ‘protected payment’. This is paid on top of the full rate of the new State Pension.
For further information see the gov.uk website. https://www.gov.uk/new-state-pension/what-youll-get
Full list of how much State Pension levels are rising in April:
Men born on or after April 6, 1951, and women born on or after April 6, 1953 are able to claim the new state pension. People born before these dates are only entitled to the basic state pension payments.
- Full new state pension: increasing from £221.20 a week to £230.25 a week
- Full old basic state pension: increasing from £169.50 a week to £176.45 a week
