The Department for Work and Pensions (DWP) is set to increase state pension payments to £1,930 for some pensioners in July. This rise is due to a quirk in payment dates, where those whose state pension is paid on a Wednesday will receive a double payment during the seventh month of the year.
Why the Double Payment?
Wednesday, July 1, marks the first day of the calendar month. As the DWP pays the state pension every four weeks, pensioners will receive a second payment four weeks later on July 28. This means that for those receiving the full new state pension, which currently stands at £241 per week, the total amount for July will be £1,930.
Eligibility for the Full Rate
The full new state pension rate is available to men born after April 5, 1951, and women born after April 5, 1953. Pensioners should check their eligibility based on their National Insurance record.
Payment Schedule
The state pension is typically paid every four weeks into a chosen account. The day of payment depends on 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 receive the payment earlier.
Consider Deferring Your Pension
You are not required to claim your state pension immediately upon reaching state pension age. If you have sufficient income from other sources, you might 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, then for every nine weeks you defer, you get an extra 1% state pension. If you do it for a year, it works out at about an extra 5.8%.”
