The Department for Work and Pensions (DWP) has announced an increase in the additional state pension (AP) for basic state pensioners, providing an extra £8.44 per week. This uplift raises the weekly payment from £222.10 to £230.54, amounting to an additional £439 per year for eligible recipients.
Understanding the Additional State Pension
The additional state pension, also known as the second state pension or the State Earnings-Related Pension Scheme (SERPS), was designed as a top-up to the basic state pension. While it is no longer possible to accrue further additional state pension, individuals who reached state pension age before April 2016 continue to receive both the basic state pension and any additional state pension they qualify for.
New State Pension Rules
For those reaching state pension age after April 2016, the new state pension applies as a single payment. However, if additional state pension was built up under the old system, this amount is factored into the overall pension entitlement.
According to Which?, there is no fixed amount for the additional state pension. The sum received depends on the number of years National Insurance contributions were made, earnings history, and whether the individual was contracted out of the scheme. The maximum additional state pension for the 2026-27 tax year is £230.54 per week, excluding any state pension top-up.
Basic State Pension Details
Under the old scheme, the maximum basic state pension stands at £184.90 per week. Actual amounts may vary based on individual circumstances. Key factors influencing state pension amounts include birth year and the number of qualifying years of National Insurance contributions.
Checking Your State Pension
The DWP provides an online forecast tool that shows how many qualifying NI years have been accumulated and how many more are needed to receive the maximum state pension. Accessing this forecast requires a Government Gateway account.
