State pensioners are to receive a 4.1 percent boost to their payments from April next year, with the full new state pension increasing by more than £470 a year.
Chancellor Rachel Reeves has confirmed in her Autumn Budget today (April 30) that payments will go up in line with the triple lock, with the full new state pension going up from £221.20 a week to £230.30 a week, an increase of £473.60 a year.
Those on the full basic state pension will get a pay boost from the current £169.50 a week up to £176.45 a week, meaning they wil enjoy a £361.40 a year increase.
The Chancellor told the Commons that Labour had committed to the triple lock “to ensure our pensioners are protected in their retirement”.
However, many pensioners are not on the full amount, as you typically need 35 years of full National Insurance contributions to get the full new state pension and 35 years worth to get the full basic amount.
If you want to check how much state pension you are on track to receive, you can do so using the state pension forecast tool on the Government website.
However, experts have warned previously that despite the pay increase, many pensioners will see no real-terms benefit as they will no longer by eligible for the Winter Fuel Payment from this year.
The Government has changed the eligibility for the payment, worth £200 or £300 this year. Previously it was a universal benefit for those of state pension age but now you have to also be on an eligible means-tested benefit, such as Pension Credit.
Greg Marsh, CEO of AI money-saving tool Nous.co, said: “For millions of pensioners the increase will be almost entirely cancelled out by the loss of their Winter Fuel Payment.
“This will leave significant numbers struggling to afford their bills just as we head into winter, so it’s crucial that people make savings where they can.”
