Thousands of state pension recipients across the UK are set to receive their monthly payment a day early next week due to the upcoming bank holiday.
Early Payment Details for New Year
The Department for Work and Pensions (DWP) has confirmed that payments due on Thursday, 1 January will instead be made on Wednesday, 31 December. This change affects claimants whose regular payment date falls on the New Year's Day bank holiday.
While the payment date shifts, the amount received remains unchanged. For those on the full new state pension, this means a payment of £921 will arrive in accounts before the holiday. The DWP's standard policy, as stated on its official website, is to pay on the preceding working day when a scheduled date falls on a weekend or bank holiday.
Who Qualifies for the New State Pension?
The full new state pension, worth £230.25 per week or £921 per month, applies to men born after 6 April 1951 and women born after 6 April 1953. Eligibility and the exact amount an individual receives depend on their National Insurance record.
To receive the full new state pension rate, individuals whose National Insurance record began after April 2016 typically need 35 qualifying years of contributions. The DWP encourages people to check their State Pension forecast online to see their personal entitlement and National Insurance record.
Annual Increases and Protected Payments
The new State Pension increases each year by the highest of three measures: average earnings growth, Consumer Prices Index (CPI) inflation, or 2.5%. This is known as the triple lock guarantee.
Some pensioners may also receive a 'protected payment' on top of the full new state pension amount. This applies to those who paid into the Additional State Pension (the old State Second Pension or SERPS) before 2016 and would have received a higher amount under the previous rules. Any protected payment increases annually in line with the CPI.
December features three bank holidays—Christmas Day, Boxing Day, and New Year's Day—during which DWP payments are not processed. Anyone expecting a payment on those dates should have received it on the last working day beforehand.
