Latest news with #SandraWrench
Daily Mirror
14 hours ago
- Business
- Daily Mirror
Ex-DWP worker urges parents to claim Child Benefit even if they are not eligible
Sandra Wrench, who boasts 42 years' experience dealing with State Pensions and benefits, explained that there are three key reasons why parents should claim Child Benefit A former Department for Work and Pensions (DWP) worker with 42 years of experience in State Pensions and benefits is strongly advising all parents to claim Child Benefit. And she said they should do it even if they're not eligible for the payment part from HM Revenue and Customs (HMRC). Sandra Wrench has highlighted three main reasons to claim Child Benefit. These are to increase National Insurance credits, ensure your child gets their National Insurance number, and to boost your State Pension, reports the Daily Record. Speaking to the Daily Record, she said: "With the introduction of the High Income Child Benefit Charge in January 2013, some parents whose earnings exceed the limit of £50-£60,000 have not bothered to submit a claim to Child Benefit after January 2013, as they are not entitled to the payment of Child Benefit. However, from April 2024 the earnings limit increased to £60,000 - £80,000." She went on to say: "If your earnings exceed, it is essential that you still claim Child Benefit, but opt out of the payment. By opting out of the payment of Child Benefit, you do not then have any problem with HMRC chasing you for any overpayments. HMRC not only wants the Child Benefit repaid, but can also fine you." She added: "By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit." Parents can opt out of receiving Child Benefit payments by ticking a box in section 4 on the Child Benefit claim form. Key reasons to claim Child Benefit Sandra explained that there are three reasons for claiming Child Benefit, even if you opt out of the payment. National Insurance Credits You are entitled to NI (National Insurance) credits until the child reaches age 12. You get one credit for each week you have claimed child benefit, so 52 credits for a complete tax year gives you a qualifying year towards your State Pension. If you then have another child, your NI credits continue until the second child is 12. If your child was 12 in February, you would get NI Credits until the child was 12 in February. If you had not returned to work when your child was 12, so you had a part qualifying year from April to February, you could make it a qualifying year by paying Voluntary Class 3 contributions. So check your NI record on a regular basis, for any part qualifying years as well - you can do this on here or call HMRC NI helpline on 0300 200 3500. National Insurance Number Sandra explained: 'You need to make a claim to Child Benefit for your child to be automatically issued with a National Insurance Number (NINO) at age 16. If you do not register for Child Benefit, your child will not automatically receive a NINO at age 16, but will have to apply for a NINO." When you register a child with Child Benefit Centre, the child is allocated a NINO at that stage, which is then issued to the child at age 16. Specified Adult Child Care Credits If you return to work when your child is still under 12, and you pay NI contributions because you are working, you do not need the NI Child Benefit Credits. So if a family member, under State Pension Age (SPA), such as a grandmother or grandfather, is looking after the child under 12 while the parent is at work, the parent can pass the NI Child Benefit credits to that other family member. The credits can then be used by this other family member towards their own State Pension, if they have given up work. These NI Credits are then known as Specified Adult Child Care Credits, and you apply for them through HMRC. HMRC will not award the credits to this other family member without first checking that the parent has a qualifying year from working. You can only apply for these credits if the parent has claimed child benefit. More information on Specified Adult Child Care Credits can be found on here. NI Credits for Child Benefit If a claim for Child Benefit is made late, the claim can only be backdated three months, which means that NI Credits for Child Benefit can only be backdated three months as well. Sandra explained how this has resulted in some women losing out on the NI Credits for Child Benefit which would count towards their State Pension. This was reviewed by the UK Government in April 2023, and NI Credits can now be backdated to the birth of the child, so if you have missed out on these NI Credits, you will be able to claim these credits from April 2026. NINOs issued to 16 year olds, and change of address Sandra said: 'Please ensure you notify HMRC/ Child Benefit of any change of address as the NINO will be sent to your 16 year old at your last known address. 'With parents opting out of the payment of Child Benefit due to the High Income CB Charge, it is essential that parents notify the Child Benefit Centre of any change of address, so the NINO for their child is sent to the correct address. If a parent is not in receipt of Child Benefit, it becomes easy for a change of address to be overlooked and not notified to the relevant department. Child Benefit rates 2025/26 The new rates started on April 7: Eldest or only child - £26.05 a week Additional children - £17.25 a week per child Child Benefit is payable until the child is 16, or up to age 20 if the child is staying in approved education or training. Sandra warned: 'Do not confuse the actual payment of Child Benefit with NI Credits for Child Benefit - the payment of Child Benefit you get for the child up to the age of 16, the CB NI Credits are only available until the child reaches the age of 12. Full details on Child Benefit can be found on here. You can also contact the Child Benefit helpline is 0300 200 3100.
Daily Record
2 days ago
- Business
- Daily Record
Former DWP employee urges all parents to claim Child Benefit to boost State Pension payments
Sandra Wrench shares three crucial reasons parents should not ignore Child Benefit. A former Department for Work and Pensions (DWP) employee with 42 years' experience dealing with State Pensions and benefits, is urging all parents to claim Child Benefit - even if they do not qualify for the payment element of the benefit delivered by HM Revenue and Customs (HMRC). Sandra Wrench explains three key reasons for claiming Child Benefit, which include boosting National Insurance credits, National Insurance number allocation for your child, and topping up your State Pension. The ex-DWP employee told the Daily Record: 'With the introduction of the High Income Child Benefit Charge in January 2013, some parents whose earnings exceed the limit of £50-£60,000 have not bothered to submit a claim to Child Benefit after January 2013, as they are not entitled to the payment of Child Benefit. However, from April 2024 the earnings limit increased to £60,000 - £80,000.' Sandra continued: 'If your earnings exceed, it is essential that you still claim Child Benefit, but opt out of the payment. By opting out of the payment of Child Benefit, you do not then have any problem with HMRC chasing you for any overpayments. HMRC not only wants the Child Benefit repaid, but can also fine you. 'By opting out of the payment, this saves you having to complete any Tax Self Assessment, as regards child benefit.' To opt out of the payment of child benefit, there is a box on the Child benefit claim form in section 4 which you can tick. Key reasons to claim Child Benefit Sandra explained that there are three reasons for claiming Child Benefit, even if you opt out of the payment. National Insurance Credits You are entitled to NI (National Insurance) credits until the child reaches age 12. You get one credit for each week you have claimed child benefit, so 52 credits for a complete tax year gives you a qualifying year towards your State Pension. If you then have another child, your NI credits continue until the second child is 12. If your child was 12 in February, you would get NI Credits until the child was 12 in February. If you had not returned to work when your child was 12, so you had a part qualifying year from April to February, you could make it a qualifying year by paying Voluntary Class 3 contributions. So check your NI record on a regular basis, for any part qualifying years as well - you can do this on here or call HMRC NI helpline on 0300 200 3500. National Insurance Number Sandra explained: 'You need to make a claim to Child Benefit for your child to be automatically issued with a National Insurance Number (NINO) at age 16. If you do not register for Child Benefit, your child will not automatically receive a NINO at age 16, but will have to apply for a NINO. When you register a child with Child Benefit Centre, the child is allocated a NINO at that stage, which is then issued to the child at age 16. Specified Adult Child Care Credits If you return to work when your child is still under 12, and you pay NI contributions because you are working, you do not need the NI Child Benefit Credits. So if a family member, under State Pension Age (SPA), such as a grandmother or grandfather, is looking after the child under 12 while the parent is at work, the parent can pass the NI Child Benefit credits to that other family member. The credits can then be used by this other family member towards their own State Pension, if they have given up work. These NI Credits are then known as Specified Adult Child Care Credits, and you apply for them through HMRC. HMRC will not award the credits to this other family member without first checking that the parent has a qualifying year from working. You can only apply for these credits if the parent has claimed child benefit. Backdating Child Benefit Child Benefit can only be backdated three months, so you need to submit a claim to Child Benefit within three months of the birth of your child. NI Credits for Child Benefit If a claim for Child Benefit is made late, the claim can only be backdated three months, which means that NI Credits for Child Benefit can only be backdated three months as well. Sandra explained how this has resulted in some women losing out on the NI Credits for Child Benefit which would count towards their State Pension. This was reviewed by the UK Government in April 2023, and NI Credits can now be backdated to the birth of the child, so if you have missed out on these NI Credits, you will be able to claim these credits from April 2026. NINOs issued to 16 year olds, and change of address Sandra said: 'Please ensure you notify HMRC/ Child Benefit of any change of address as the NINO will be sent to your 16 year old at your last known address. 'With parents opting out of the payment of Child Benefit due to the High Income CB Charge, it is essential that parents notify the Child Benefit Centre of any change of address, so the NINO for their child is sent to the correct address. If a parent is not in receipt of Child Benefit, it becomes easy for a change of address to be overlooked and not notified to the relevant department. Child Benefit rates 2025/26 The new rates started on April 7: Eldest or only child - £26.05 a week Additional children - £17.25 a week per child Child Benefit is payable until the child is 16, or up to age 20 if the child is staying in approved education or training. Sandra warned: 'Do not confuse the actual payment of Child Benefit with NI Credits for Child Benefit - the payment of Child Benefit you get for the child up to the age of 16, the CB NI Credits are only available until the child reaches the age of 12. Full details on Child Benefit can be found on here. You can also contact the Child Benefit helpline is 0300 200 3100.
Daily Record
15-07-2025
- Business
- Daily Record
Ex-DWP employee identifies key reasons State Pension cannot be means-tested by UK Government
Sandra Wrench worked at the DWP for 42 years and sets out why it cannot be means-tested. Pensions Minister Torsten Bell confirmed last month that the State Pension will not be means-tested in the future after growing speculation on social media hinted that the contributory benefit would be the next to be reviewed by the Labour Government. Under the Triple Lock, the New and Basic State Pensions increase each year in-line with whichever is the highest between average annual earnings growth from May to July, Consumer Price Index (CPI) inflation in the year to September or 2.5 per cent. Deferred State Pensions and additional elements rise by the September CPI inflation rate. Around 55 per cent of social security expenditure goes to pensioners - in 2025/26 the Department for Work and Pensions (DWP) will spend £174.9 billion on benefits for pensioners. This includes spending on the State Pension which is forecast to be £145.6bn over the current financial year. As the costs continue to rise, the topic of means-testing will no doubt surface again, however, former DWP employee Sandra Wrench, who has 42 years' experience dealing with benefits including the State Pension, says it would be 'virtually impossible' to means-test the State Pension due to the different administration structures for the New and Basic State Pensions. Mrs Wrench told the Daily Record: 'There are two main barriers that the Uk Government would face if they did go down this path and why it makes it virtually impossible to means-test the State Pension. 'I worked on the State Pension section at Bedford DWP for 18 years, and when you actually process claims for the State Pension, you have a greater understanding and knowledge of the benefit.' Voluntary Contributions paid by way of cash You can fill in gaps in your National Insurance (NI) record by paying cash into the State Pension scheme by way of Voluntary Contributions. Mrs Wrench explained: 'You are not going to pay cash into a scheme unless you can get your money back. We look at the recent time extension for the payment of Voluntary Contributions from 2006, where the deadline was originally April 5, 2023, but this was extended by the UK Government to April 5, 2025, so they are still actively encouraging the payment of Voluntary Contributions. 'Would they be doing this if they were going to means-test the State Pension? The answer is no.' She continued: 'If the State Pension was means-tested, HM Revenue and Customs (HMRC) would have to refund Voluntary Contributions to those members of the public, who had paid them, but were not entitled to the payment of State Pension. 'State Pension is based on the NI contributions you pay from age 16 to State Pension age - typically, a period of 50 years - so some people may have paid Voluntary Contributions 20/30 years ago for a period in the future. 'It is unlikely that HMRC would retain detailed payment details of Voluntary Contributions, both Class 3 and Class 2, paid all those years ago, even though the NI record will confirm that Voluntary contributions have been paid, which count towards qualifying years.' The DWP insider highlighted how if the State Pension was means-tested, would HMRC be able to refund NI contributions from all those years ago? Mrs Wrench said: 'In a nutshell, the answer is probably no, unless the customer had kept detailed records of all payments made for past years.' She continued: 'I myself paid a substantial sum into the Additional Pension Top Up scheme for those who were State Pension age before April 2016, and this scheme ran between Oct 2015 and April 2017. 'Due to the higher rate of Basic State Pension for the New State Pension, currently £230.25 a week, this gave those pensioners who were State Pension age before April 2016 with the lower amount of Basic State Pension, currently £176.45 a week, the opportunity of purchasing up to £25 a week additional pension to help bridge this gap.' It's important to note that the Additional Pension uprates annually under the CPI measure of the Triple Lock. Additional Pension (1978-2016) and contracted out employment The Old?Basic State Pension scheme consists of three parts: Basic State Pension - paid on the number of qualifying years which you have Additional pension - first known as SERPS (State Earnings Related Pension Scheme) from 1978, then known as the Second State Pension from 2002 to 2016, and it was the additional State Pension scheme you could contract out The Graduated Retirement Pension which existed from 1961-1975 Mrs Wrench explained that with 'contracted out' employment, your additional pension is paid with your occupational pension as opposed to being paid by the state. She continued: 'DWP have admitted and confirmed in writing that they do not know the exact amount your scheme will pay you as a result of contracting out as it will depend on the actual rules of your private scheme. 'So DWP would have to estimate the amount of additional pension in pay for State Pension purposes, if that person had been in contracted out employment. So how can you means-test an amount which is estimated? 'DWP have stated that the pension you get from your workplace or personal pension scheme for the periods you were contracted out, should include an amount that, in most cases, will be the equivalent of the Additional State Pension you would have got if you had not been contracted out, and this amount is known as the Contracted-Out-Pension-Equivalent (COPE). 'DWP will know how much Additional Pension you would have got if you had not been contracted out, but this figure will be distorted once it is incorporated into an occupational pension scheme, via contracted out employment.' Contributory and Non Contributory Benefits Mrs Wrench explained how non contributory benefits are funded by general taxation and do not depend on NI contributions, and are benefits such as Attendance allowance, Carer's Allowance, Child Benefit, Universal Credit and Personal Independence Payment. Contributory benefits are funded by NI contributions and include benefits such as Jobseekers Allowance, Employment and Support Allowance, State Pension and Statutory Sick Pay. Mrs Wrench said: 'You could understand non contributory benefits being means tested, such as Universal Credit, but you would be hard pushed to start means testing contributory benefits, such as State Pension, as the payment of these depend on NI contributions paid by the public, and the public have paid into the scheme. 'With means testing, you are paid the benefit on a temporary basis, and if your circumstances change, the amount of money you are paid could fluctuate. The last thing you want when you reach retirement is fluctuating income, and the anxiety which accompanies this . 'At least with the State Pension, you receive what you are entitled to, know exactly how much money you have coming in a month and know exactly where you stand financially' She added: 'To mention means-testing the State Pension may cause concern for some people, particularly when their State Pension may be their main source of income, but for the reasons mentioned above, it is highly unlikely that the government would be actually able to means-test it.'
Daily Record
23-06-2025
- Business
- Daily Record
Former DWP employee warns of two-tier State Pension payments for older people
Sandra Wrench worked at the DWP for 42 years and warns of a widening gap between the New and Basic State Pensions. Pension Credit – Could you or someone you know be eligible? The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across Great Britain, including 1.1m in Scotland. Of that total, 34 per cent are in receipt of the New State Pension while 66 per cent receive the Basic/Old State Pension. Under the Triple Lock guarantee, the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July, Consumer Price Index (CPI) inflation rate in the year to September, or 2.5 per cent. However, additional elements of the State Pension, including deferred amounts, rise by the September CPI rate, something a former DWP employee warns is creating a 'two-tier uprating system for pensioners'. Sandra Wrench has 42 years experience in dealing with State Pensions and benefits delivered by the DWP and previously wrote to DWP Ministers in 2023 expressing her concerns. Mrs Wrench told the Daily Record how some pensioners may not be aware that this year's Triple Lock uprating of 4.1 per cent only applies to the New and Basic State Pension payment rates; additional components h The ex-DWP employee said: 'The Triple Lock guarantee only covers the BASIC State Pension and not all components, the other components being Additional Pension (the scheme which existed between 1978-April 5, 2016 and which you could contract out of), Graduated Pension (1961-1975), increments for deferring your State Pension, and the protected pension which is any amount in excess of the 100 per cent rate of the new 100 per cent State Pension which you might be entitled to at April 6, 2016. 'With the calculation of the New State Pension at April 6, 2016, in most cases, all the components of the old State Pension have been added together to give a basic State Pension, and where applicable a protected pension, which is the excess above the 100 per cent rate of the New State Pension. 'So by adding all the components together this has brought components such as additional pension, within the scope of the Triple Lock, which was 4.1 per cent. Under the old scheme, additional pension would have just been increased by the CPI rate of 1.7 per cent.' Mrs Wrench warned: 'With The Triple Lock relating to the basic rates of the State Pension only, this has created a two-tier uprating system for those who reached State Pension Age before April 2016 where the 100 per cent rate of the Old/Basic State Pension is currently £176.45 a week and those who reached retirement age after April 2016 where the 100 per cent rate of the New State Pension is higher at £230.25.' She shared an example to help illustrate the difference: A person who was State Pension Age before April 2016, has a weekly amount of State Pension as £240.00, consisting of 100 per cent Old/Basic State Pension of £176.45, additional pension of £59.75 and graduated pension of £3.80. Compare this with a person who reached State Pension Age after April 2016, who also has a weekly pension of £240.00, but this consists of 100 per cent New State Pension of £230.25 and a protected payment of £9.75. In April 2026, the person who reached State Pension Age before April 2016, will only have £176.45 increased by the Triple Lock, compared with a person who reached State Pension Age after April 2016, who will have a higher amount of £230.25 increased by the Triple Lock. Mrs Wrench continued: 'You can see how a person who reached State Pension Age before April 2016 has a lower percentage of their State Pension uprated by the Triple Lock compared with those who reached State Pension Age after April 2016. 'Because of this difference in basic pension and the Triple lock only relating to the basic rate of the State Pension, this will inevitably lead to those who reached State Pension Age before April 2016 falling further behind with every annual uprating.' The insider explained that when the Triple Lock was introduced in 2011, there was only one State Pension system (Old/Basic), but the introduction of the New State Pension in April 2016, calls into question whether it should also be uprated under the Triple Lock. However, she warns that any future adjustment to the Triple Lock 'will particularly affect poorer pensioners, such as those who do not have other sources of income, those who are disabled and not able to work full time, and women with caring responsibilities who have had to work part time and who may not have had the opportunity to build up any private or work pension'. Mrs Wrench added: 'The DWP have confirmed they cannot means-test the State Pension, so possibly the only way that the increased costs for State Pension can be addressed is through some adjustment to the Triple Lock, and to reassess the annual uprating of the State Pension. Mrs Wrench shared two examples to help highlight the uprating impact: From April 6, 2016, a woman, who is State Pension Age after April 2016. has a Basic State Pension of £63.63, and Additional Pension of £24.82. These two components were added together on April 6, 2016 to give her a starting amount of £88.45 for the New State Pension, and this £88.45 is now all Basic State Pension under the new scheme. If you were State Pension Age before April 2016, under the old scheme the basic State Pension of £63.63 would have increased by the Triple Lock, and the additional pension of £24.82 increased by the lower CPI rate , but by adding the two together for the New State Pension from April 6, 2016, this means that all this amount is basic state Pension and increases by the Triple Lock. So those who are State Pension Age after April 2016 are at an advantage compared to those who reached retirement age before April 2016, as regards the Triple Lock increase. A person who reached State Pension Age after April 6, 2016 has the full 100 per cent rate of the basic State Pension which was then £119.30 (under the old scheme) and Additional Pension of £75.00. Basic £119.30 plus AP £75.00 is equal to £194.30 at April 6, 2016, which was converted into the 100 per cent rate of the New State Pension of £155.65 (the 100% rate at April 6, 2016) plus a protected payment of £38.65. Basic State Pension increases by the Triple Lock, but protected payment increases by CPI rate, so some of the additional pension has been converted into Basic State Pension and brought within the scope of The Triple Lock. 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%
Daily Record
27-05-2025
- Business
- Daily Record
Triple Lock creating two-tier State Pension for older people warns former DWP employee
The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across Great Britain, including 1.1m in Scotland. Of that total, 34 per cent are in receipt of the New State Pension while 66 per cent receive the Basic/Old State Pension. Under the Triple Lock guarantee, the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July, Consumer Price Index (CPI) inflation rate in the year to September, or 2.5 per cent. However, additional elements of the State Pension, including deferred amounts, rise by the September CPI rate, something a former DWP employee warns is creating a 'two-tier uprating system for pensioners'. Sandra Wrench has 42 years experience in dealing with State Pensions and benefits delivered by the DWP and previously wrote to DWP Ministers in 2023 expressing her concerns. Mrs Wrench told the Daily Record how some pensioners may not be aware that this year's Triple Lock uprating of 4.1 per cent only applies to the New and Basic State Pension payment rates; additional components have risen by 1.7 per cent - the September CPI inflation rate. This is also the uprating applied to Universal Credit and other benefits delivered by the DWP. It's important to highlight that devolved benefits in Scotland, including Adult and Child Disability Payment, Pension Age Disability Payment, Carer Support Payment and Pension Age Winter Heating Payment, also increased by 1.7 per cent this month. The ex-DWP employee said: 'The Triple Lock guarantee only covers the BASIC State Pension and not all components, the other components being Additional Pension (the scheme which existed between 1978-April 5, 2016 and which you could contract out of), Graduated Pension (1961-1975), increments for deferring your State Pension, and the protected pension which is any amount in excess of the 100% rate of the new 100% State Pension which you might be entitled to at April 6, 2016. 'With the calculation of the New State Pension at April 6, 2016, in most cases, all the components of the old State Pension have been added together to give a basic State Pension, and where applicable a protected pension, which is the excess above the 100% rate of the New State Pension. 'So by adding all the components together this has brought components such as additional pension, within the scope of the Triple Lock, which was 4.1% this April 2025. Under the old scheme, additional pension would have just been increased by the CPI rate of 1.7% for this April 2025.' Mrs Wrench warned: 'With The Triple Lock relating to the basic rates of the State Pension only, this has created a two-tier uprating system for those who reached State Pension Age before April 2016 where the 100% rate of the Old/Basic State Pension is currently £176.45 a week and those who reached retirement age after April 2016 where the 100% rate of the New State Pension is higher at £230.25.' She shared an example to help illustrate the difference: A person who was State Pension Age before April 2016, has a weekly amount of State Pension as £240.00, consisting of 100% Old/Basic State Pension of £176.45, additional pension of £59.75 and graduated pension of £3.80. Compare this with a person who reached State Pension Age after April 2016, who also has a weekly pension of £240.00, but this consists of 100% New State Pension of £230.25 and a protected payment of £9.75. In April 2026, the person who reached State Pension Age before April 2016, will only have £176.45 increased by the Triple Lock, compared with a person who reached State Pension Age after April 2016, who will have a higher amount of £230.25 increased by the Triple Lock. Mrs Wrench continued: 'You can see how a person who reached State Pension Age before April 2016 has a lower percentage of their State Pension uprated by the Triple Lock compared with those who reached State Pension Age after April 2016. 'Because of this difference in basic pension and the Triple lock only relating to the basic rate of the State Pension, this will inevitably lead to those who reached State Pension Age before April 2016 falling further behind with every annual uprating.' The insider explained that when the Triple Lock was introduced in 2011, there was only one State Pension (Old/Basic), but the introduction of the New State Pension in April 2016, calls into question whether it should also be uprated under the Triple Lock. However, she warns that any future adjustment to the Triple Lock 'will particularly affect poorer pensioners, such as those who do not have other sources of income, those who are disabled and not able to work full time, and women with caring responsibilities who have had to work part time and who may not have had the opportunity to build up any private or work pension'. Mrs Wrench added: 'The DWP have confirmed they cannot means-test the State Pension, so possibly the only way that the increased costs for State Pension can be addressed is through some adjustment to the Triple Lock, and to reassess the annual uprating of the State Pension. Mrs Wrench shared two examples to help highlight the uprating impact: From April 6, 2016, a woman, who is State Pension Age after April 2016. has a Basic State Pension of £63.63, and Additional Pension of £24.82. These two components were added together on April 6, 2016 to give her a starting amount of £88.45 for the New State Pension, and this £88.45 is now all Basic State Pension under the new scheme. If you were State Pension Age before April 2016, under the old scheme the basic State Pension of £63.63 would have increased by the Triple Lock, and the additional pension of £24.82 increased by the lower CPI rate , but by adding the two together for the New State Pension from April 6, 2016, this means that all this amount is basic state Pension and increases by the Triple Lock. So those who are State Pension Age after April 2016 are at an advantage compared to those who reached retirement age before April 2016, as regards the Triple Lock increase. A person who reached State Pension Age after April 6, 2016 has the full 100% rate of the basic State Pension which was then £119.30 (under the old scheme) and Additional Pension of £75.00. Basic £119.30 plus AP £75.00 = £194.30 at April 6, 2016, which was converted into the 100% rate of the New State Pension of £155.65 (the 100% rate at April 6, 2016) plus a protected payment of £38.65. Basic State Pension increases by the Triple Lock, but protected payment increases by CPI rate, so some of the additional pension has been converted into Basic State Pension and brought within the scope of The Triple Lock. State Pension payments 2025/26 The DWP has published the full list of State Pension and benefit uprated payments on here, which also includes additional elements such as the deferred rates, which have risen by 1.7 per cent (September Consumer Price Index inflation rate). 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%
