State pensioners to set to get a £108 boost if they retired after a specific date.
There are two types of state pension, depending on when individuals retired. Those who retired after 2016 and are on the new state pension can anticipate an additional £108 a year.
However, the increase will be less for those on the old basic state pension, with an estimated extra £84 a year. These figures were calculated following the revelation that the state pension rate is likely to rise by approximately 4% from next April.
This is due to the triple lock guaranteeing an annual increase to match the highest out of inflation, wage growth and 2.5%. Wage growth appears to be the highest of these at around 4%, reports BirminghamLive.
While the state pension increase may be seen as positive news, it follows a challenging winter for millions of pensioners who have lost their Winter Fuel Payments, worth up to £300.
Therefore, this will still result in a net loss for all but the poorest pensioners. Critics argue that many will end up worse off as a result and that the state pension increase next year won’t make as much difference as it usually would.
Payments for those on the new state pension are expected to rise to £230 a week, up from the current rate of £221. Those on the basic state pension are set to receive £176 a week, up from £169.
It comes as the Department for Work and Pensions (DWP) has issued a warning to thousands of married women who could be owed average payouts of £5,000 due to a mix-up with National Insurance contributions.
The DWP is making back payments to women after HMRC identified missing Home Responsibilities Protection (HRP), affecting 210,000 women in their 60s and 70s – born before 1964.
Steve Webb revealed that HMRC has written to over 250,000 people over pension age who are potentially eligible, as well as writing to those affected under pension age.
“Anyone who has received such a letter should make sure that they respond so that their position can be checked,” he advised.
Eligibility could apply if you claimed child benefit from 1978/1979 onwards and if your partner claimed, it’s also possible to swap when the ‘wrong’ parent claims child benefit.
However, if you paid the married women’s stamp during the same period you claimed child benefit, HRP cannot be used to increase your pension.
