DWP state pension increase could see older people get £884 every month | Personal Finance | Finance

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are to get a welcome pay increase from April with some payments increasing to over £880 for each pay period.

Payments are increasing 8.5 percent with the full basic state pension going up from £156.20 a week to £169.20 a week, while the full new state pension is going up from £203.85 a week to £221.20 a week.

As recipients get their payments in four-week instalments, this means the full basic state pension will go up to £678 each pay period while the full new state pension will pay £884.80.

State pension payments are increasing from April 8, after the new tax year begins on April 6, when benefits will increase 6.7 percent.

The 8.5 percent increase was chosen after the Govenment decided to honour the triple lock pledge, with payments increasing in line with the average earnings metric.

The triple lock guarantees payments go up each year in line with the highest of inflation, the rise in average earnings or 2.5 percent.

With the April increase, the full new state pension will be worth £11,502 a year while the full basic state pension will be worth £8,814 a year.

State pensioners may also want to check if they are owed back payments as the DWP hundreds of thousands of people who were underpaid.

There are three broad categories of state pension underpayments:

  • Cases covered by the ongoing state pension underpayments (Legal Entitlements and Administrative Practice exercise
  • Home Responsibilities Protection (HRP) cases where HRP has not been recorded accurately on National Insurance records
  • Cases where National Insurance credits need to be updated for people who were claiming Universal Credit.

Peter Schofield, permanent secretary at the DWP, recently told a parliamentary committee that the first two stages of the state pension LEAP (Legal Entitlement and Administrative Practice) exercise involving married women, or those in a civil partnership (category BL) and those over 80 (category D), were “largely complete at the end of December”.

A person can check how much state pension they should receive using the state pension forecast tool on the Government website.

An individual usually needs 30 years of National Insurance contributions to get the full basic state pension and 35 years of contributions to get the full new state pension.

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