Latest news with #BasicStatePension
Daily Record
23-06-2025
- Business
- Daily Record
People on New State Pension on track for monthly payments of £971 from next April
The annual uprating will be announced at the Autumn Budget but pensioners can start calculating the Triple Lock uplift now. Income tax rises for Scots in April - how the changes affect you Nearly 13 million State Pensioners across Great Britain, including over one million living in Scotland, should start to keep an eye on the Consumer Price Index (CPI) inflation rate as it forms part of the Triple Lock measure which determines the annual uprating for the contributory benefit. The latest figures from the Office for National Statistics (ONS) show UK inflation decreased to 3.4 per cent in May, down from 3.5 per cent in April. Annual growth in employees' average wages for regular earnings (excluding bonuses) was 5.6 per cent and total earnings (including bonuses) was 5.5 per cent. Under the Triple Lock measure, State Pensions increase 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. The New and Basic State Pension increased by 4.7 per cent in April, which means 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. State Pension uprating predictions for 2026/27 The Triple Lock is currently on track to be determined by the earnings growth element which is currently at 5.5 per cent. However, this figure may go up or down and isn't the final metric that will determine the level of uprating. The next CPI figure will be published by the ONS on July 17. That being said, a 5.5 per cent increase on the current State Pension would see people receive the following amounts. 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 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, but the wages growth figure is usually published in August. State Pension and tax The Labour Government confirmed earlier this year that the Personal Allowance will remain frozen at £12,570 until April 2028. If the New and Basic State Pension increased by the lower measure of the Triple Lock (2.5%), it would see the full New State Pension exceed the income tax threshold by nearly £79 in the 2027/28 financial year (£12,578.80). While the amount of State Pension to be taxed may seem relatively small - tax is only paid on the amount over the Personal Allowance - older people with other income streams could find themselves having to part with more cash to pay a tax bill - if it's not automatically deducted from private or workplace pensions through PAYE. And remember, that figure is based on the lower measure of the Triple Lock. Using the current projections, more pensioners could be dragged into the retirement tax net sooner, especially if they have additional income through a private or workplace pension. 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 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.
Daily Record
18-06-2025
- Business
- Daily Record
DWP to review State Pension, PIP and other benefit claims for fraud or errors this year
The DWP confirmed £9.5 billion was overpaid to claimants over the last year Reasons your Universal Credit may be cut by DWP The Department for Work and Pensions (DWP) pays welfare benefits to around 23.7 million people across Great Britain. That figure includes 13m on the New or Basic State Pension - classed as a contributory benefit - and people claiming at least one DWP benefit. The newly published annual 'Fraud and error in the benefit system' report, which estimates how much money the Department has incorrectly paid in the 2024/25 financial year, either through overpayments or underpayments, indicates that £9.5 billion was overpaid to claimants, 3.3 per cent of the total benefits expenditure. This is down from £9.7bn (3.6%) in 2023/24. The total rate of benefit underpayments remained the same at £1.2bn (0.4%). To qualify for DWP benefits people need to meet certain eligibility criteria and the amount of money they receive depends on their circumstances. DWP explained: 'Sometimes people tell us the wrong information or do not tell us when their circumstances change. Reporting accurate information and providing evidence may change the amount of benefit people are eligible for and in some circumstances, they may be eligible for more money. 'However, we cannot calculate the correct amount unless people tell us accurately about their circumstances. This means that people are not eligible for increases in the amount of money they receive until we have the correct information.' DWP fraud and error review for 2025/26 financial year The DWP confirmed it will be measuring sample cases from six benefits for 'unfulfilled eligibility' over the current financial year. These include: Universal Credit Housing Benefit (pension age, both passported and non-passported cases) Pension Credit State Pension Personal Independence Payment Disability Living Allowance for children Definitions of Fraud, Claimant Error and Official Error The DWP defines the three types of fraud and error. Fraud Claims where all three of the following conditions apply: the conditions for receipt of benefit, or the rate of benefit in payment, are not being met the claimant can reasonably be expected to be aware of the effect on their entitlement benefit payment stops or reduces as a result of the claim review Claimant Error (unfulfilled eligibility) An overpayment has occurred where the claimant has provided inaccurate or incomplete information, or failed to report a change in their circumstances, but there is no evidence of fraudulent intent on the claimant's part. Official Error The benefit has been paid incorrectly due to a failure to act, a delay or a mistaken assessment by DWP, a local authority or HM Revenue and Customs (HMRC), to which no one outside of that department has materially contributed. The DWP report also highlighted that total spending on benefits increased from £266.2bn in 2023/24 to £292.2bn last year. This was an increase of £26.0bn (9.8%) which was mainly due to: State Pension - spending increasing from £123.9bn to £142.0bn Universal Credit spending increasing from £51.9bn to £65.3bn Personal Independence Payment (PIP) spending increasing from £21.6bn to £25.8bn However, DWP said those increases are partially offset by a reduction of £10.2bn (100.0%) in Cost of Living Payments expenditure. DWP plans to publish the 2025/26 findings in May next year.
Daily Mirror
15-06-2025
- Business
- Daily Mirror
Full list of pensioners due up to £106 a week from DWP
You could be eligible for some additional cash to pay for daily living costs. Pensioners with a certain income level could be in line for up to £106 a week from the Department of Work and Pensions (DWP) to help with everyday expenses. The DWP's latest figures show that the State Pension currently provides a steady financial income for 13 million older individuals across the UK. Eligibility for this payment requires reaching the Government's retirement age of 66 for both men and women, as well as having contributed to National Insurance (NI) for a minimum of 10 years. However, as highlighted by the Daily Record, those over 80 who either have no Basic State Pension or receive less than £105.70 per week could be entitled to extra funds to aid with daily living costs. The "over 80 pension" offers £105.70 weekly to seniors not receiving any Basic State Pension, or it supplements their existing pension up to this amount. Additionally, low-income individuals over 80 may be eligible for Pension Credit, potentially gaining over £4,300 in additional financial support throughout the 2025/26 fiscal year. Claiming the over 80 pension To claim the over 80 pension, it's important to understand that eligibility ceases if you reached State Pension age on or after April 6 2016; instead, you would be eligible for the New State Pension. The guidance on indicates that you can claim the over 80 pension if all of the following conditions are met: You are 80 or over You do not get Basic State Pension or your Basic State Pension is less than £105.70 a week You were resident in the UK for at least 10 years out of 20 (this does not have to be 10 years in a row) - this 20-year period must include the day before you turned 80 or any day after You were 'ordinarily resident' in the UK, the Isle of Man or Gibraltar on your 80th birthday or the date you made the claim for this pension, if later. Also, on your 80th birthday or when you claimed the pension, you needed to be "ordinarily resident" in the UK, the Isle of Man or Gibraltar. For UK nationals residing in or moving to an EEA country or Switzerland, consult the website for detailed pension info. Your eligibility for the over 80 pension is not based on National Insurance contributions. To make a claim, you can get a form from either your local Jobcentre Plus or the Pension Service. The earliest you can claim is three months before your 80th birthday. You can request a claim form from the Pension Service by ringing 0800 731 7898. Pension Credit This tax-free benefit ensures single pensioners receive a minimum of £227.10 per week and couples get £346.60. You must have reached the Pension Credit qualifying age, equivalent to the State Pension age, and live in Great Britain to qualify. The fastest way to check if you can claim Pension Credit is online. Elderly individuals, 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 Alternatively, pensioners can directly ring the Pension Credit helpline to make a claim on 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday.
Daily Record
12-06-2025
- Business
- Daily Record
New call for full State Pension for half a million older people after Winter Fuel Payment U-turn
Around 453,000 pensioners are living in a country which does not have a reciprocal agreement with the UK Government. Pension Credit – Could you or someone you know be eligible? Earlier this week the UK Government announced Winter Fuel Payments will be reinstated for over 9 million pensioners later this year. The U-turn and Chancellor Rachel Reeves Spending Review on Wednesday have prompted calls from the 'End Frozen Pensions Campaign' for the annual State Pension uprating to be reinstated for around 453,000 retirees living in countries which do not have a reciprocal agreement with the UK Government. The campaign said it would cost the UK Government just under £60 million per year to end this 'historic wrong'. The policy, which prevents State Pensions from being increased annually - to counteract the impact of inflation for UK pensioners living in certain countries - means some are receiving as little as £60 per week, far below the current £176.45 rate for the Basic State Pension for those living in Scotland, England, Wales and Northern Ireland. John Duguid, Chair of the End Frozen Pensions Campaign, said: "The Government's U-turn on Winter Fuel Payments shows there is a common consensus that the most vulnerable in our society rely on such payments as essential lifelines during times of need. 'Victims of the Frozen Pensions scandal, who receive only a fraction of their full UK State Pension because they live in some countries overseas, should not be excluded from this rationale. Yet the Government's continued refusal to address this longstanding discrimination means they continue to suffer from often negligible levels of state support. 'These British pensioners, many of whom spent their working lives in the UK, receive on average just £60 per week compared to the more than £170 per week they would be entitled to in the UK, or a non-frozen country.' He added: 'Ending this historic wrong would cost just under £60 million per year. This would barely register in the overall State Pension budget. But this isn't only about cost, it is about the principle of treating British state pensioners fairly and equally. 'Similar to the Government's decision to reinstate Winter Fuel Payments, ending this scandal is the correct and morally just action to take. The Government should do right by those who paid fairly into the system, and ensure they have dignity in their retirement.' Last month, cross-party MPs united to intensify pressure on the UK Government over its refusal to reform the so-called 'frozen pensions' policy. Only British overseas pensioners living in specific countries - mostly within the Commonwealth - are impacted, in what Rebecca Smith MP described as "the ultimate postcode lottery'. Those in the USA see the same annual increase as British pensioners living in the UK or France, while those in Australia or Canada, see their State Pension remain 'frozen' and effectively fall in value. For example, 100-year-old Second World War veteran Anne Puckridge, who lived and worked in the UK until the age of 76 and served in all three of the RAF, Navy and the Army, has received just £72.50 per week since 2001, the year she moved to Canada to be nearer her daughter. Jim Shannon MP similarly questioned the logic of the policy applying in only some countries and not others, arguing 'the arbitrary distinction between countries with and without an operating agreement lacks logic and smacks of red tape and bureaucracy gone mad." The Minister for Pensions, Torsten Bell MP, was mostly notably challenged on the estimated cost of ending the policy, which is estimated at £60m per year - 0.04 per cent of the annual State Pension budget - rather than the £950m per year quoted by the Department for Work and Pensions (DWP). The difference explained by the fact the DWP are quoting for uprating and backdating payments to account for the years affected pensioners have been frozen. However, campaigners are instead asking to receive the annual increase from this point onwards. Douglas McAllister MP stressed that campaigners and supportive MPs are 'not seeking a full backdating, but for the Government to introduce some form of yearly indexing to answer that injustice'. Longterm critic of the policy Sir Roger Gale MP argued the policy is 'not a matter of cost. It is a matter of moral responsibility and duty.' The Minister was also reminded by a number of MPs that 'the vast majority of impacted pensioners still report having no knowledge of the policy's existence prior to moving overseas'. State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Fortnightly payment: £460.50 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Fortnightly payment: £352.90 Four-weekly payment: £705.80 Annual amount: £9,175 Future State Pension increases The Labour Government has pledged to honour the Triple Lock or the duration of its term and the latest predictions show the following projected annual increases: 2025/26 - 4.1% (the forecast was 4%) 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5% Article continues below Recent analysis released by Royal London revealed only around half of people receiving the New State Pension last year were getting the full weekly amount - and around 150,000 were on less than £100 per week.
Daily Record
11-06-2025
- Business
- Daily Record
Simple ways older people can top-up their income or reduce outgoings this summer
Checklist of benefits and discounts only available for people over State Pension age. Some 13 million people have now reached State Pension age across Great Britain, including over 1.1m living in Scotland. Many of those in retirement rely on the contributory benefit as their main source of income which now provides essential financial support of up to £921 every four weeks for 4.1m people in receipt of the New State Pension. Some 8.8m retirees are receiving up to £705.80 every pay period through the Basic State Pension. However, many pensioners may not be aware of more than a dozen ways they might be able to boost their current income over the summer, including checking for unclaimed benefits and looking at discounts or reductions on their Council Tax. The biggest income boost comes through Pension Credit, which is worth £4,300 a year on average and currently takes around 50 working days to process, which would see first payments for successful claimants arrive before the end of August. To make it easier for people to understand and claim these benefits, discounts or reductions, the MoneyHelper website has compiled a comprehensive list along with quick eligibility checks to ensure older people are accessing essential support in later life. The easiest way to check eligibility for any benefit, discount or reduction is to use an online benefits calculator - find out more about these here. If you have an older family member or friends who do not have access to the internet, or is not familiar with using a computer, give them a hand to ensure they are not missing out on additional financial support in 2025. Benefits for people over State Pension age Benefits and discounts available in retirement include: State Pension Pension Credit Help with Council Tax Help with heating costs - eligibility for some may require a relevant qualifying means-tested benefit Health benefits - Attendance Allowance, Pension Age Disability Payment Travel and TV benefits Benefits for war widows and widowers State Pension The State Pension gives you a regular taxable income for the rest of your life as soon as you reach State Pension age and make a claim for it. Some people choose to defer this while they continue to work. It's not means-tested, but the amount you get depends on how many qualifying years of National Insurance Contributions or credits you've built up. You need at least 10 years' for any State Pension payment and around 35 for the maximum amount - this may be more for people who were 'contracted out', find out more here. State Pension weekly payment rates 2025/26 Full New State Pension: £230.25 Full Basic State Pension (Category A or B): £176.45 Pension Credit Pension Credit currently gives 1.4m people across the UK - including over 125,000 in Scotland - extra money to help with living costs if they are over State Pension age and on a low income. It is a 'passport' benefit providing on average around £4,300 each year in financial support, acting as a 'gateway' to Council Tax discounts, help with housing costs and NHS discounts along with free TV Licences for the over-75s. Try the Pension Credit Calculator on for yourself or a family member to make sure you're receiving all the financial support you are entitled to. You can also call the Pension Credit helpline on 0800 99 1234. Help with Council Tax Whether you own your home or rent, you could be eligible for support from your local authority to help you pay your Council Tax. Contact your local council to ask about support with Council Tax - find out more here. Insulation and heating schemes There are a number of schemes that install insulation and heating improvements to make your home more energy efficient. You're likely to be eligible if your home is poorly insulated or doesn't have a working central heating system, and if you receive any of a range of income-related benefits including Pension Credit. Find out more from Home Energy Scotland here or by calling 0808 808 2282. Health benefits Everyone in Scotland is entitled to free prescriptions. Find out more about free dental treatment and refunds for travel to hospital appointments here. Disability and care benefits A number of benefits are available to people who have disabilities, long-term health conditions or specific care needs. These benefits include: Personal Independence Payment (PIP) - if you're under State Pension age, if you reached State Pension age while claiming PIP this will continue Adult Disability Payment - replacing PIP for people living in Scotland Disability Living Allowance (DLA) - you will need to have been already claiming this before you reached State Pension age Attendance Allowance - if you're over State Pension age and have not claimed DLA or PIP Pension Age Disability Payment (PADP) - a new benefit that has now replaced all new claims for Attendance Allowance in Scotland. Find out more here. We have dedicated sections on the Daily Record website for each of these benefits: Travel concessions If you are over 60 or disabled find out about travel concessions on the Transport Scotland website here. Free passport If you were born on or before September 2, 1929, and are a British national, you could be eligible for a free passport. Find out more and how to apply on the website here. Free / Discounted TV Licence You now have to pay for your TV licence unless you are getting Pension Credit. People over State Pension age may be able to get the TV Licence for half price if they are registered as severely sight-impaired or blind. Check out the MoneyHelper Advice Service TV licence guide here to find out if you're eligible. Benefits for war widows and widowers If your husband, wife or civil partner died or were injured or became ill as a result of their service in Her Majesty's (HM) Armed Forces, or during a time of war before April 6, 2005, you might be entitled to a War Widow's or Widower's Pension. If they died or sustained an injury or illness due to serving in a conflict after April 6, 2005, you might be entitled to compensation through the Armed Forces Compensation Scheme. here. Medical costs for war pensioners If you need medical treatment because you were disabled while serving in the Armed Forces, you could get help towards your medical costs for your accepted disability. War Disablement Pension If you were injured or disabled while serving in the Armed Forces before April 6, 2005, you can get extra help towards your pension. Find out more about War Disablement Pension on the website here . Age Scotland also have a full list of benefits, discounts and support older people may be entitled to claim, find out more on their website here.
