State Pension currently provides essential financial support to over 12.4 million older people across the UK, including 981,399 pensioners living in Scotland.
On April 11, the Department for Work and Pensions (DWP) increased most benefits and state pension payments by 3.1% and people should start to see this increase land in their bank accounts over the course of the next few weeks.
People receiving a state pension can choose to be paid weekly or every four weeks – not to be confused with the monthly payment, as the DWP makes 13 payments every four weeks every year over a 52-week period , which may result in two installments. in the same calendar month.
There is much more to State Pension than two types of payments and there are several ways to increase the amount you are paid, mainly by increasing your National Insurance contributions.
Below are the new pay rates for people receiving the old basic pension and the new full state pension, along with four things that could increase those payments.
New state pension
You can claim the new state pension if you are:
- a man born on or after April 6, 1951
- a woman born on or after April 6, 1953
You can get the new state pension at the earliest when you reach state retirement age – find yours here.
If you reached the state pension age before 6 April 2016, you will instead receive the state pension according to the old rules.
New state pension rates
- New full state pension: £185.15
- Transitional rate lower than the full rate: 3.0902%
- Secure payment: 3.10%
- Increases – own (based on new deferred state pension): 3.10%
- Increases – inherited (based on former deferred state pension): 3.10%
Former basic state pension
You can claim the basic state pension if you are:
- a man born before April 6, 1951
- a woman born before April 6, 1953
To obtain the basic state pension, you must have paid or been credited with national insurance contributions.
Former Basic State Pension Rates
- Category A or B basic pension: £141.85
- Category B (lower) basic pension – spouse’s or civil partner’s insurance: £85.00
- Category C or D – non-contributory: £85.00
Supplementary pension
- Supplementary pension: 3.10%
- Maximum additional pension (own and inherited): £185.90
Increments
- Basic pension: 3.10%
- Supplementary pension: 3.10%
- Graduated retirement benefit: 3.10%
- Estate capital: 3.10%
Deduction contracted
- Contractual AP deduction for pre-April 1988 contract income: nil
- Contractual PA deduction for contract income from April 1988 to 1997: 3.00%
Graduated retirement benefit
- Progressive retirement benefit (unit): £0.1492
Increase in long-term disability for age
- Increase in long-term disability for age: 3.10%
Addition of 80 years
- Addition at 80: £0.25
Increase in long-term disability for age
- Higher fare: £24.15
- Reduced price: £12.10
Invalidity allowance (transitional) for recipients of the state pension
- Higher fare: £24.15
- Average price: £15.50
- Lower fare: £7.75
Four ways to increase your monthly income
Most of them involve setting aside time to check if you’re eligible or have missed National Insurance credits, so be patient and don’t dismiss them – especially benefits, as they might provide regular payments and additional and open the door to other discounts and reductions on housing tax, housing costs and exemption from the TV license fee.
Applying for family allowances
Women in particular are deprived of valuable state pension credits when they are at home caring for children. However, if they apply for Child Benefit, they will receive National Insurance (NI) credits which count towards their state pension. Many women have not had access to it in the past because their husbands claimed family allowances rather than themselves.
Others did not participate when they gave up child benefits after the introduction of the tax on benefits for high-income children. If you apply for Child Benefit on your behalf, you will get NI credit for your state pension.
Check that you have not missed these credits, contact the child benefit office here.
Buy National Insurance Credits
If you can save money, you can fill in the gaps in your National Insurance record by buying Class 3 NI Voluntary Contributions. Buying an additional full year will cost £800 and you can usually backdate claims by six years.
Claim a pension credit
It’s something the DWP is pushing more than a million older people to claim as they lack crucial financial support and additional benefits – read more about it here.
If you are over state pension age and on a low income you should check if you are eligible for pension credit as it can increase your weekly income to £177.10 if you are single and £270.30 joint income if you have a partner. .
But even if you don’t qualify for financial aid, you might still be eligible for other benefits such as council tax assistance, housing cost assistance, and a TV license. free for people over 75.
Although it has the capacity to really increase the incomes of the poorest retirees, the use of this benefit remains low with only about 60% of eligible persons applying for it.
There is also a quick online pension credit calculator to use – try it on GOV.UK here.
(Image: Getty)
Attendance allowance
Attendance allowance helps people who have reached state pension age to pay additional costs if they suffer from a physical or intellectual disability, serious illness, sensory impairment or a mental health issue that prevents them from looking after themselves – but it doesn’t cover any mobility needs.
You should consider making a claim if you need help or supervision throughout the day or at certain times of the night, even if you are not currently receiving that help.
This could include:
- Help with your personal care – getting dressed, eating or drinking, going to bed and getting up, bathing or showering and going to the toilet
- Help to stay safe
You should also apply if you have difficulty with personal tasks, especially if they take up a lot of your time, if you are in pain, or if you need physical assistance, such as a chair to lean on.
Successful applicants could receive £61.85 or £92.40 per week, depending on the level of care required due to their condition, which is paid every four weeks and equals £247.40 and £369.60 per period of payment, respectively.
We have a whole section dedicated to helping people understand Assistance Benefit as well as claim guides for some conditions and myths that prevent people from claiming assistance – find out more here.
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