DWP Freezes Over-80s Pension Top-Up Despite 4.8% Rise for Other Retirees
The Department for Work and Pensions has announced a freeze on one state pension rate, even as it hikes payments for other retirees across the UK. This decision impacts specific pension categories, sparking concerns among older citizens.
Category D Pension for Over-80s
People aged 80 or over who reside in the UK receive a 'category D' state pension. In April, this will increase by 4.8 per cent, rising to £110.77. However, if individuals are already receiving more than this amount, no extra payment is added on top.
Critically, the DWP has confirmed that the additional payment for over-80s is frozen again at 25p. This freeze comes despite the overall uplift in pension rates, leaving many elderly recipients without this small but symbolic increase.
Christmas Bonus and Other Pension Changes
In addition to the over-80s top-up freeze, state pensioners who qualify for the Christmas Bonus will see it remain stagnant. The £10 payout, distributed in December ahead of the holiday season, is frozen once more, affecting thousands of retirees.
Other pension categories are set to benefit from the 4.8 per cent rise:
- Category B State Pension: This applies to spouses, often women, who retired on small state pensions before April 2016. They receive an uplift to 60 per cent of their partner's basic state pension payments upon reaching retirement age. It will increase from £105.70 to £110.75 in April.
- Full Flat Rate Pension: For individuals who reached state pension age from April 2016 onwards, the rate rises from £230.25 to £241.40 per week, marking an annual increase of £575 to £12,548.
- Basic Rate Pension: The amount for those who reached state pension age from April 2016 will go up from £176.45 to £184.90 weekly.
Additional State Pension and Inflation Adjustments
Many retirees on the basic rate also receive significant top-ups, known as additional state pension, S2P, or Serps. These are earned earlier in life through extra salary-related National Insurance contributions.
Additional, Serps, or State Second Pension payments will rise according to inflation at 3.8 per cent from April. For those who reached state pension age after April 2016 but had already accumulated enough additional state pension to qualify for more than the headline flat rate, the difference between the two amounts will be paid on top.
This 'protected' portion of the state pension, exceeding the flat rate, will also increase by 3.8 per cent, providing some relief amid the freezes elsewhere.
