Two changes are being noticed for all state pensioners from May as new rates kick in from the Department for Work and Pensions (DWP). Under the Triple Lock, basic state pensioners will receive £439 extra a year. New state pensioners, meanwhile, will get £575 extra. The increases for the 13 million who claim the state pension come into effect as the government takes wider action to ease pressure on household finances, including raising the National Living Wage, cutting an average of £150 from household energy bills, lifting the two child limit and freezing rail fares and prescription charges.
Government Action to Support Pensioners
Work and Pensions Secretary Pat McFadden said: "I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households. This government will always protect our pensioners, and that’s why we are raising the full rate of new State Pension by up to £575 this coming year."
Minister for Pensions Torsten Bell added: "After a lifetime of work and contribution, people deserve a decent retirement. Raising the State Pensions faster than prices, ensuring it is a pension they can rely on, is how we make that a reality for millions."
Basic State Pension Increase
The full basic State Pension will increase from £176.45 to £184.90 a week, providing up to £439.40 extra per year. The basic rate is for those born before 1953 (women) or 1951 (men). In addition, most working-age benefits and other benefits for people below State Pension age will also increase by 3.8%, helping millions of households.
New State Pension Increase
The full rate of the new State Pension will increase by 4.8% in line with the increase in average earnings, from £230.25 to £241.30 a week. This results in up to £574.60 extra annually. By the end of the year, pensioners’ annual incomes are expected to rise by up to £2,100, boosting financial security for millions, Labour has said.
