Latest news with #Allowance
North Wales Live
25 minutes ago
- Business
- North Wales Live
HMRC may target state pensioners who breach £597 annual limit
State pensioners have been cautioned they may face bills from HMRC if their earnings exceed £597 annually. Following April's rise, the State Pension climbed by 4.1 per cent under the Triple Lock mechanism, which lifts payments in line with inflation, wage increases or 2.5% - whichever is highest. The complete new State Pension rate now stands at £230.25 weekly, equivalent to £11,973 yearly. However, this leaves pensioners collecting this sum merely £597 short of the £12,570 Personal Allowance threshold. Any income above £12,570 faces 20 per cent tax - rising to 40 per cent beyond £50,270. The Low Incomes Tax Reform Group is now urging the Department for Work and Pensions (DWP) and HMRC to alert pensioners nearing this limit. The organisation stated: "We think that DWP and HMRC should work together to ensure that pensioners are warned about possibly needing to pay tax on their State Pension in future. This should include setting out how the tax will be collected and the likely tax liability." It added: "Some words of warning could, for example, be included with the State Pension notification letters that DWP send out each spring in advance of the April pension increases," reports Birmingham Live. BBC and ITV star Martin Lewis was asked on his recent Sounds podcast: "Explain to me why any pensioner would want to increase their pension? "You will be taxed 20 per cent over £12,570, which means you'll be worse off and you'll be asked to pay more in, you'd then have your benefits stopped if you're below the limit and that takes you below the limit and that takes you over the limit even by 10p." Martin responded: "Let me split that into two. Without being rude, on the first bit you're talking nonsense. Okay, look, tax in this country is marginal. You only pay 20 per cent on the amount above the threshold. "The State Pension has always been taxable if you have other income, it counts as taxable income. So look, let's say you add £1,000 a year to what you earn and that £1,000 is above the threshold. "Yes it's taxed so you only get £800 of it. But you still get £800 more! Tax is marginal, you always want to earn more, you always receive more if you earn more. "You might not get every pound more that you're being given but you're still, the more you earn the more you get, so the tax thing, that's a red herring." He added: "The other one isn't - for those on very low incomes if you may be eligible for Pension Credit and you don't have any other income, the Pension Credit effectively tops you up to the full State Pension anyway so if you're gonna buy years to top you up to the full State Pension as it is possible that you would have simply got it via pension credit anyway."
Daily Mirror
5 days ago
- Business
- Daily Mirror
Pensioners await July 17 hint that may point to future payments
The most recent data from the Office for National Statistics (ONS) indicates that UK inflation fell to 3.4 per cent in May, a slight decrease from 3.5 per cent in April Nearly 13 million State Pensioners across Great Britain should keep an eye on the Consumer Price Index (CPI) inflation rate this month. That's because it plays a pivotal role in the Triple Lock measure that determines the annual increase state pensioners get in payments. The latest data from the Office for National Statistics (ONS) shows that UK inflation dropped to 3.4 per cent in May, a slight dip from 3.5 per cent in April. The yearly growth in employees' average wages for regular earnings (excluding bonuses) was recorded at 5.6 per cent and total earnings (including bonuses) stood at 5.5 per cent. Under the Triple Lock measure, State Pensions rise each year in line with whichever is the highest of average annual earnings growth from May to July, CPI in the year to September or 2.5 per cent. So at the moment, the earnings figure is the one that will decide payments - but of course things could change. In April, the New and Basic State Pension saw an increase of 4.7 per cent, meaning someone on the full New State Pension currently receives £230.25 per week, or £921 every four-week pay period. Those on the full Basic State Pension receive £176.45 each week, or £705.80 every four-week pay period, reports the Daily Record. State Pension uprating predictions for 2026/27 Looking ahead to the State Pension uprating predictions for 2026/27, the Triple Lock is currently set to be determined by the earnings growth element, which presently stands at 5.5 per cent. However, this figure may fluctuate and isn't the final metric that will determine the level of uprating. The next CPI figure will be released by the ONS on July 17. A potential 5.5 per cent increase on the current State Pension could result in the following payouts: Full New State Pension Weekly: £242.90 Four-weekly pay period: £971.60 Annual amount: £12,630.80 Full Basic State Pension Weekly: £186.25 Four-weekly pay period: £744.60 Annual amount: £9,679.80 The official annual uprating won't be confirmed until the Autumn Budget, but pensioners - and those due to retire next year - can start to plan their finances by following the Triple Lock measurements. The September CPI figure will be published in mid-October, while the wages growth figure is usually released in August. What is taxed Guidance on states: 'You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates. Your total income could include: the State Pension you get - Basic or New State Pension Additional State Pension a private pension (workplace or personal) - you can take some of this tax-free earnings from employment or self-employment any taxable benefits you get any other income, such as money from investments, property or savings READ MORE: 'When doctors finally told me what my rash was, I considered dying' Check if you have to pay tax on your pension Before you can check, you will need to know: if you have a State Pension or a private pension how much State Pension and private pension income you will get this tax year (April 6 to April 5) the amount of any other taxable income you'll get this tax year (for example, from employment or state benefits) You cannot use this tool if you get: any foreign income Marriage Allowance Blind Person's Allowance Use this online tool at to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on here.
India.com
6 days ago
- Business
- India.com
7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by…
Home Business 7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by… 7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by… Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55 percent to 59 percent. 7th Pay Commission: Centre (Representational Image) 7th Pay Commission: The Modi government is likely to increase the Dearness Allowance (DA) of Central government employees from 55 percent to 59 percent, effective July 2025. According to the reports, this anticipated adjustment is based on recent inflation data, particularly the rise in the All India Consumer Price Index for Industrial Workers (AICPI-IW). It is important to note that this DA hike i.e for July-December period, is going to be the last DA hike under the 7th Pay Commission because from January 2026 the government has announced to implement the 8th Pay Commission. According to the data released by Labour Bureau, attached office of the M/o Labour & Employment the All-India CPI-IW for May 2025 increased by 0.5 point and stood 144.0 (one hundred forty four). Year-on-year inflation for the month of May 2025 stood at 2.93 percent as compared to 3.86% in May, 2024. The Bureau has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. DA Hike Formula Under 7th Pay Commission Dearness Allowance is revised biannually, in January and July, based on the average AICPI-IW data over the past twelve months. The formula for calculating DA is: A (%) = [(Average CPI-IW for past 12 months – 261.42) / 261.42] 100. Using this calculation method, the expected hike is estimated at 4 percent. Will The Last Dearness Allowance Hike Under 7th Pay Commission Be Bigger Than Last Time? The rise in AICPI-IW figures over the past three months — March, April, and May — suggests that the expected Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners could reach approximately 58.08%. Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55% to 59%. This adjustment is anticipated ahead of the implementation of the 8th Pay Commission in January 2026. Announcement Expected in September or October It is important to note that the DA hike will take effect from July, however, the official announcements typically occur later. In previous years, such revisions have been disclosed in September or October, often coinciding with the festive season. This year, the announcement is also anticipated around Diwali. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on
Daily Mirror
6 days ago
- Business
- Daily Mirror
Millions of pensioners unaware they are missing out on thousands
Millions of pensioners could be affected (Image: Getty Images/iStockphoto) Many of the 13 million pensioners across the UK may not realise that they could be eligible for two separate benefits worth a combined total of up to £10,040 over the current financial year. One of these benefits is not means-tested and aims to assist older people with long-term health conditions, while the other can provide additional financial support to those on a low income. Pension Credit is designed to help those over State Pension age on a low income by boosting their annual income by an average of £4,300. Meanwhile, Attendance Allowance can offer extra financial support of up to £441.60 each month - equating to some £5,740.80 each year. Both these payments are made separately from the State Pension, which is worth up to £230.25 each week, or £921 every four-week payment period. As reported by the Daily Record, the Department for Work and Pensions (DWP) estimates that more than 700,000 people are eligible for Pension Credit, but are not claiming this income-related benefit. It is believed that more than one million pensioners are eligible for Attendance Allowance, which is not affected by income or savings, is tax-free and is not counted as income when claiming Pension Credit, reports Lancs Live. Currently, Pension Credit is assisting 1.4 million individuals. It boosts weekly income to a guaranteed minimum level of £227.10 for single pensioners or £346.60 for couples. This year, it is worth an average of £4,300. If you are a single person on the New State Pension with a total weekly income below £227.10, or part of a couple with a combined weekly income of less than £346.60, you might be eligible for Pension Credit. Even an award of just £1 per week can unlock access to other financial support, including Council Tax discounts and help with heating bills this winter through the Warm Home Discount Scheme. In May 2019, the law changed so that a 'mixed age couple' - a couple where one partner is of State Pension age and the other is under it - are considered to be a 'working age' couple when checking entitlement to means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age. If you qualify for Pension Credit, you can also get other help. The quickest way to check eligibility for Pension Credit is online. Older people, or their friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on here. Alternatively, pensioners can ring the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday. More information about claiming Pension Credit can be found on Currently, nearly 1.7 million older people across Great Britain are assisted by the Attendance Allowance. This support helps with the additional daily living costs associated with having a physical or mental health condition, disability, or long-term illness. It is important to note that you can make a claim even if you do not have someone caring for you. Those over the State Pension age who claim Attendance Allowance receive either £73.90 (lower rate) or £110.40 (higher rate) each week. As this benefit is typically paid every four weeks, this equates to either £295.60 or £441.60 per payment period - totalling around £5,740.80 over the 2025/26 financial year. You should consider applying for Attendance Allowance if you have a disability or illness and require assistance or supervision throughout the day or at times during the night - even if you're not currently receiving that help. You should also consider applying if you find personal tasks challenging, for example, if they take a considerable amount of time, cause discomfort, or if you require physical support, such as leaning on a chair. Bear in mind, Attendance Allowance is not solely for those with a physical disability or illness. Attendance Allowance is not means-tested, which means it does not matter what other income you have or how much savings you have accumulated - there is no upper limit. It is also tax-free and you will be exempt from the Benefit Cap, so you will not have money deducted from any other benefits you're currently receiving. You can also claim it even if you are still employed and earning an income. To apply for Attendance Allowance, you'll need to fill out a comprehensive claim form. While it may seem daunting initially, help is available from Citizens Advice and Independent Age. Complete information on how to get the application form by post or over the phone can be found on the website here.
Daily Record
04-07-2025
- Health
- Daily Record
Older people with health issues could boost State Pension by up to £5,740 this year
Attendance Allowance and Pension Age Disability Payment are tax-free benefits worth either £73.90 or £110.40 each week. The latest figures from the Department for Work and Pensions (DWP) show that at the end of August 2024, nearly 1.7 million older people were claiming Attendance Allowance, including 150,000 living in Scotland. The tax-free benefit is not means-tested and worth either £73.90 for the lower rate or £110.40 for the higher rate each week. Attendance Allowance is usually paid every four weeks, this amounts to either £295.60 or £441.60 every pay period - some £5,740.80 over the current financial year. How much someone receives depends on the level of support needed and the benefit is designed to help people of State Pension age with daily living expenses which can also help them stay independent in their own home for longer. It's important to be aware there is no mobility component attached to Attendance Allowance. Attendance Allowance changes in Scotland Older people living in Scotland can no longer claim Attendance Allowance and instead, need to claim the new devolved benefit, Pension Age Disability Payment. New figures from Social Security Scotland show some 1,875 people over 66 were receiving Pension Age Disability Payments at the end of April. The benefit follows the same eligibility criteria and payment award scale as DWP, but is administered and delivered by Social Security Scotland. Full details on the benefit can be found on here. Number of Attendance Allowance claimants - August 2024 The number of older people receiving payments includes: Scotland - 149,997 England - 1,406,281 Wales - 110,047 Living abroad - 5,912 Total - 1,672,590 Support for people with health conditions The benefit supports people with a disability, long-term illness and mental or physical health issues. The list of conditions supported through Attendance Allowance is long, but the most common disabling condition - an umbrella term used by the DWP - is arthritis, which provides support for 483,376 people across Great Britain, including 44,455 in Scotland. It's important to note that this list is not a checklist for claiming Attendance Allowance, it is intended to help people understand what type of conditions are being supported. However, if you need extra support during the day or night due to a long-term illness, disability or health condition, you should check out the official eligibility guidance on the website here. The figures below show the percentage of people claiming for health issues related to these 48 conditions: Arthritis - 47% Spondylosis - 48% Back Pain - Other / Precise Diagnosis not Specified - 43% Disease Of The Muscles, Bones or Joints - 40% Trauma to Limbs - 36% Visual Disorders and Diseases - 41% Hearing Disorders - 42% Heart Disease - 50% Respiratory Disorders and Diseases - 33% Asthma - 47% Cystic Fibrosis - 27% Cerebrovascular Disease - 42% Peripheral vascular Disease - 41% Epilepsy - 44% Neurological Diseases - 50% Multiple Sclerosis - 52% Parkinsons - 30% Motor Neurone Disease - 32% Chronic Pain Syndromes - 39% Diabetes Mellitus - 39% Metabolic Disease - 38% Traumatic Paraplegia - 54% Major Trauma Other than Traumatic/Paraplegia - 45% Learning Difficulties - 48% Psychosis - 44% Psychoneurosis - 38% Personality Disorder - 48% Dementia - 20% Behavioral Disorder - 28% Alcohol and Drug Abuse - 37% Hyperkinetic Syndrome - 27% Renal Disorders - 26% Inflammatory Bowel Disease - 42% Bowel and Stomach Disease - 37% Blood Disorders - 39% Haemophilia - 39% Multi System Disorders - 41% Multiple Allergy Syndrome - 44% Skin Disease - 37% Malignant Disease - 35% Haemodialysis - 22% Frailty - 100% AIDS - 47% Coronavirus covid-19 - 1% Viral disease - precise diagnosis not specified - 13% Tuberculosis - 53% Bacterial disease - precise diagnosis not specified - 43% Cognitive disorder (other) - 22% It's important to note there are special rules for people with a terminal illness, to help speed up their application - full details on here. Below is everything you need to know about Attendance Allowance including the main health conditions being claimed, eligibility and how to make a claim. What is Attendance Allowance? Attendance Allowance helps with extra costs if you have a physical or mental disability or illness severe enough that makes it hard for you to look after yourself - it does not cover mobility needs. You do not need to have someone caring for you in order to make a claim. Who can claim? You should apply for Attendance Allowance if you have a disability or illness and need help or supervision throughout the day or at times during the night -even if you don't currently get that help. This might include: Help with your personal care - for example getting dressed, eating or drinking, getting in and out of bed, bathing or showering and going to the toilet Help to stay safe You should also apply if you have difficulties with personal tasks, for example if they take you a long time, you experience pain or you need physical help, like a chair to lean on. Attendance Allowance isn't just for people with a physical disability or illness. You should also claim if you need help or supervision throughout the day or night and have: a mental health condition learning difficulties a sensory condition - if you are deaf or visually impaired Attendance Allowance help to claim Attendance Allowance claims simplified Up to £5,750 for Scots pensioners Claim form tips to help you get support Health conditions paying up to £441 How much could I get on Attendance Allowance? You could receive either £73.90 (lower rate) or £110.40 (higher rate) each week. This amounts to either £295.60 or £441.60 every pay period. You can spend the money however you like and it could help you stay independent in your own home for longer. This might include: paying for taxis helping towards bills paying for a cleaner or gardener Can I claim Attendance Allowance even if I have savings and other income? Yes. Attendance Allowance isn't means-tested so it doesn't matter what other money you have coming in or how much you have in savings either - there's no limit. it is also tax-free and you will be exempt from the Benefit Cap so you won't have money taken away from any other benefits. Will Attendance Allowance affect my State Pension? No, it won't affect your State Pension and you can even claim it if you're still working and earning money. How does Attendance Allowance affect other benefits? The other benefits you get might increase if you get Attendance Allowance, these include: Extra Pension Credit Housing Benefit Reduction Council Tax Reduction How do I make a claim? You will need to complete a long claim form when you apply for Attendance Allowance. It might seem daunting at first but help is available from your nearest Citizens Advice, so don't let the form put you off applying. If you'd prefer to do it yourself you can follow the Citizens Advice guide on how to fill in your claim form here. Full details of how to get the application form by post or over the phone can be found on the website here. What happens if I am about to reach State Pension age? If you are thinking about applying for Attendance Allowance when you reach State Pension age, you might be better off claiming Personal Independence Payment (PIP) straight away - you may be able to get more money. Who cannot claim Attendance Allowance? You cannot claim Attendance Allowance if you have a Scottish postcode. You need to claim Pension Age Disability Payment through Social Security Scotland - full details here. You won't be able to get Attendance Allowance if you already get PIP or Disability Living Allowance (DLA) to pay for your care. If you apply for Attendance Allowance while getting DLA, the DWP will usually reassess your DLA award instead. You can renew your PIP or DLA when the existing award ends as long as you still meet the eligibility criteria. If your renewal is unsuccessful you can apply for Attendance Allowance instead. here.
