The Department for Work and Pensions (DWP) is set to increase state pension payments to £1,480 for certain pensioners next month. This rise applies to those receiving the basic state pension, specifically men born before 1951 and women born before 1953.
Double Payment in July
Due to the calendar configuration, Wednesday, July 1, marks the first day of the month, and since the state pension is paid every four weeks, pensioners will receive a second payment on July 28. This results in a total of £1,480 for the month, based on the current weekly rate of £184.90.
The basic State Pension is typically paid every four weeks into an account of your choice. If you wish to change the account, you must notify the Pension Service. Your payment day is determined by the last two digits of your National Insurance number:
- 00 to 19 – Monday
- 20 to 39 – Tuesday
- 40 to 59 – Wednesday
- 60 to 79 – Thursday
- 80 to 99 – Friday
If your usual payment day falls on a bank holiday, you may be paid earlier.
Deferring Your Pension
You are not required to claim your state pension immediately upon reaching state pension age. If you have sufficient alternative income, you may choose to delay or defer your pension. In that case, no action is needed; your pension will be automatically deferred until you claim it, and you may receive extra payments.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, explains: “If you are on the new state pension, for every nine weeks you defer, you get an extra 1% state pension. Doing so for a year results in approximately an extra 5.8%.”
