Latest news with #StatePension
Daily Record
13 hours ago
- Business
- Daily Record
New State Pension age set to change next year for people with these birthdays
The State Pension age will increase from 66 to 67 between 2026 and 2028. Pension Credit – Could you or someone you know be eligible? The Department of Work and Pensions (DWP) is urging people born between certain dates to check when they will be eligible to claim their State Pension using the online tool at The State Pension age is set to start rising from 66 to 67 next year, with the increase due to be completed for all men and women across the UK by 2028. The planned change to the official age of retirement has been in legislation since 2014 with a further State Pension age rise from 67 to 68 set to be implemented between 2044 and 2046. In a recent post on X, formerly Twitter, the DWP wrote: 'Born between 6 April 1960 and 5 March 1961? Check today to find out what your State Pension age will be.' People born on April 6, 1960 will reach State Pension age of 66 on May 6, 2026 while those born on March 5, 1961 will reach State Pension age of 67 on February 5, 2028. You can check your own State Pension age online here. It's important to be aware of these upcoming changes now, especially if you have a retirement plan in place. Everyone affected by changes to their State Pension age will receive a letter from the DWP well in advance. The Pensions Act 2014 provides for a regular review of the State Pension age, at least once every five years. The review will be based around the idea people should be able to spend a certain proportion of their adult life drawing a State Pension. A review of the planned rise to 68 is due before the end of this decade and had originally been scheduled by the then Conservative government to take place two years after the general election - which would have been 2026. Any review of the State Pension age will take into account life expectancy along with a range of other factors relevant to setting the State Pension age. After the review has reported, the UK Government may then choose to bring forward changes to the State Pension age. However, any proposals would have to go through Parliament before becoming law. Check your State Pension age online Your State Pension age is the earliest age you can start receiving your State Pension. It may be different to the age you can get a workplace or personal pension. Anyone of any age can use the online tool at to check their State Pension age, which can be an essential part of planning your retirement. You can use the State Pension age tool to check: When you will reach State Pension age Your Pension Credit qualifying age When you will be eligible for free bus travel - this is at age 60 in Scotland Check your State Pension age online here. State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 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%, he forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5% 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. The DWP will issue letters to all 12.9m State Pensioners in March telling them their new payment rates. This letter also encourages older people to check if they are eligible for Pension Credit. State Pension and tax The Personal Allowance will remain frozen at £12,570 over the 2025/26 financial year. The most important thing to be aware of is that people whose sole income is the State Pension will not pay income tax. However, anyone with additional income on top of their State Pension may need to pay tax. This is paid a year in arrears, so if the 2025/26 financial year's uplift takes you over the threshold, you will not receive a tax bill from HM Revenue and Customs (HMRC) until July 2026. How to get full New State Pension Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, said: 'People typically need at least 10 qualifying years of NI (national insurance) contributions to receive any State Pension at all and at least 35 years to receive the full New State Pension - though they don't need to be consecutive years. 'Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations. 'Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April last year - a State Pension forecast tool that has been checked by 3.7m since its launch.' She continued: 'People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the UK Government's digital channels. 'A short survey assesses the person's suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working. 'Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won't get that money back.' Ms Haine added: 'People who might need to top up include those that took a career break as well as low earners or expatriates living and working abroad."
Daily Record
13 hours ago
- Business
- Daily Record
Millions of people over State Pension age set to pay tax in retirement this year
HMRC estimates 8.7 million pensioners will pay tax for the 2025/26 financial year. Income tax rises for Scots in April - how the changes affect you The latest figures from the Department for Work and Pensions (DWP) show there are now 13 million people of State Pension age across the country. The current official age of retirement is 66 and set to rise to 67 between 2027 and 2028. HM Revenue and Customs (HMRC) data indicates that 8.7m pensioners are projected to pay income tax on their retirement income in 2025/26. It marks an increase of around 420,000 compared to the previous year (2024/25) and a rise of 1.85m from 10 years ago (2015/16). The data comes following the freezing of the Personal Allowance thresholds at £12,570 until April 2028, whilst the full annual New State Pension reached £11,973 in 2025/26, tipping hundreds of thousands more pensioners into paying income tax. The UK Government has also confirmed it will honour the Triple Lock policy during this parliamentary term. However, this could see everyone on the full, New State Pension pushed over the tax threshold in just two years' time. David Brooks, head of policy at leading independent consultancy Broadstone, said: 'We would expect a growing number of pensioners to be liable for income tax as the country's demographic changes due to our ageing population. 'Fiscal drag, however, is also bringing hundreds of thousands more pensioners into paying Income Tax bracket every year as the frozen Personal Allowance thresholds combines with the Triple Lock-protected State Pension. 'While perhaps personally frustrating for many pensioners, it reflects the nature of inflation linked occupational pensions and a Triple-locked State Pension that continues to rise.' He added: 'The government will be called on again to protect pensioners from this impact but with seemingly few ways to control the rise in pensioner incomes, taxation is the only tool left. 'We should also expect the income tax from pensioners to rise in coming years as more income will be taken from pensions. Taking pension income is the key way to protect pension benefits from the impact of the Inheritance Tax Rules on unspent pension funds due to come in from April 2027.' Under the Triple Lock policy, 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, CPI in the year to September, or 2.5 per cent. It is aimed at preventing the value of the State Pensions being whittled away by cost of living pressures. The New and Basic State Pensions increased by 4.1 per cent in April, however, future forecasts from the Labour Government expect it to rise by 2.5 per cent over the next four financial years. Using these calculations, it puts the full New State Pension on track to be worth £12,578.80 in the 2027/28 financial year - £78.80 over the Personal Allowance. 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. Online guidance at on who might need to pay tax on their pension also includes a handy tool to calculate how much tax someone might need to pay, and the different ways this can be done. The latest State Pension Triple Lock 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% State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Future new State Pension forecasts Under a 2.5 per cent increase, the full New State Pension will be worth: 2026/27 - £236 per week, £12,227.30 a year 2027/28 - £241.90 per week, £12,578.80 a year 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.
Wales Online
16 hours ago
- Health
- Wales Online
DWP to pay out £441 payment - full list of health conditions that qualify
DWP to pay out £441 payment - full list of health conditions that qualify Attendance Allowance is a payment for people who have a physical or mental disability or illness that makes it difficult for them to look after themselves Pensioners dealing with certain health conditions may qualify for additional financial assistance worth up to £441 monthly through Attendance Allowance. This benefit, provided by the Department for Work and Pensions (DWP), is intended to assist those who have reached State Pension age and are living with a disability, long-term illness, or physical or mental health condition that impacts their daily routine. DWP statistics show that nearly 1.7 million older people were claiming Attendance Allowance as of August 2024. The payment comes in two tiers based on the level of care required: £73.90 or £110.40 weekly, equivalent to £295.60 or £441.60 monthly. For money-saving tips, sign up to our Money newsletter here The weekly sum depends on how much care is needed. According to the DWP, individuals requiring "frequent help or constant supervision during the day, or supervision at night" may qualify for the lower rate of £73.90. Meanwhile, those who need "help or supervision throughout both day and night, or a medical professional has said you're nearing the end of life" are entitled to the higher rate of £110.40. As highlighted by the Daily Record, Attendance Allowance is designed to help people of State Pension age cover the additional daily expenses linked to their condition. Article continues below Figures show that 563,746 claimants (36%) have been receiving Attendance Allowance for more than five years, according to the Daily Star. Attendance Allowance serves as a vital lifeline for individuals dealing with disabilities, chronic illnesses, or mental or physical health conditions. The most commonly claimed condition is arthritis, providing support to 483,376 people across Great Britain. Data from the DWP reveals that roughly 47% of those claiming Attendance Allowance for arthritis receive an award that lasts five years or more. The following statistics demonstrate the number of claimants per condition and the percentage receiving payments for five years or longer. Those with lifelong, degenerative conditions unlikely to improve typically receive a longer award. Shorter awards are given where an improvement is anticipated. For money-saving tips, sign up to our Money newsletter here. The figure below represents all claimants up until the end of August 2024. Attendance Allowance is a benefit designed to assist with additional costs if you have a physical or mental disability or illness that makes self-care challenging. It does not cater for mobility needs. Having a carer is not a prerequisite for making a claim. Who is eligible? You should apply for Attendance Allowance if you have a disability or illness and require help or supervision throughout the day or at times during the night - even if you're not currently receiving this help. The DWP provides a list of common health issues that might qualify you for attendance allowance. They are as follows: Arthritis Spondylosis Back pain – other/precise diagnosis not specified Disease of the muscles, bones or joints Trauma to limbs Visual disorders and diseases Hearing disorders Heart disease Respiratory disorders and diseases Asthma Cystic fibrosis Cerebrovascular disease Peripheral vascular disease Epilepsy Neurological diseases Multiple sclerosis Parkinson's disease Motor neurone disease Chronic pain syndromes Diabetes mellitus Metabolic disease Traumatic paraplegia/tetraplegia Major trauma other than traumatic paraplegia/tetraplegia Learning difficulties Psychosis Psychoneurosis Personality Disorder Dementia Behavioural disorder Alcohol and drug abuse Hyperkinetic syndrome Renal disorders Inflammatory bowel disease Bowel and stomach disease Blood disorders Haemophilia Multi system disorders Multiple allergy syndrome Skin disease Malignant disease Severely mentally impaired Double amputee Deaf/blind Haemodialysis Frailty Total parenteral nutrition AIDS Infectious diseases: viral disease - Covid-19 Infectious diseases: viral disease - precise diagnosis not specified Infectious diseases: bacterial disease – tuberculosis Infectious diseases: bacterial disease – precise diagnosis not specified Infectious diseases: protozoal disease – malaria Infectious diseases: protozoal disease – other/precise diagnosis not specified Infectious diseases - other / precise diagnosis not specified Cognitive disorder - other / precise diagnosis not specified Terminally Ill Unknown If you struggle with everyday tasks, whether they take a long time, cause discomfort or require physical support like leaning on furniture, it might be worth considering applying for Attendance Allowance. It's not just for those with a physical disability or illness. You should also consider applying if you need help or supervision throughout the day or night and have: The money can be used in any way you choose and it could assist in maintaining your independence at home for a longer period. Applying for Attendance Allowance may seem daunting due to the lengthy claim form. However, assistance is readily available from Citizens Advice and Independent Age. Detailed instructions on how to obtain the application form by post or phone can be found on the website. Article continues below
Daily Record
16 hours ago
- Business
- Daily Record
Exact date pensioners need to opt out of Winter Fuel Payment to avoid HMRC clawback
Around two million pensioners with an income over £35,000 are due to receive this year's Winter Fuel Payment. Pension Credit – Could you or someone you know be eligible? The Department for Work and Pensions (DWP) will issue Winter Fuel Payments of between £100 and £300 to an estimated nine million pensioners in England and Wales over November and December. People over 66 in Scotland will receive up to £305 through the Pension Age Winter Heating Payment on November 30. Payments of both benefits will be issued automatically. However, Pensions Minister Torsten Bell has confirmed around two million people over State Pension age currently have an annual income above the £35,000 eligibility threshold and can either pay the money back through PAYE or a self Assessment tax return. They can also opt out of receiving the payment. He explained there is no need to take any 'immediate action' but if anyone wants to opt out they must do so before September 15, 2025. The DWP Minister's comments came after Conservative MP Charlie Dewhirst asked the Treasury about the number of pensioners 'who will need to pay back the Winter Fuel Payment through tax system, in each financial year between 1 April 2025 and 31 March 2029'. In a written response on Tuesday, Mr Bell said: 'From this winter 2025-26 Winter Fuel Payment eligibility will be expanded in England and Wales. Pensioners with incomes below or equal to £35,000 will benefit from Winter Fuel Payments. 'About nine million individuals will benefit from a Winter Fuel Payment this winter. Winter Fuel Payments will be paid automatically meaning any pensioner receiving a State Pension or DWP benefit or who has previously received a Winter Fuel Payment will not need to make a claim. 'There are about two million individuals with an income above £35,000. Those who receive a Winter Fuel Payment will have the full amount of their Winter Fuel Payment recovered via HMRC. Pensioners do not need to take any immediate action, and those that wish to opt out of receiving the winter fuel payment can do so.' Full details on what you will need before contacting the Winter Fuel Payment Centre can be found on here. Eligibility for Winter Fuel Payments You can get a Winter Fuel Payment if you were born before September 22, 1959 and live in England or Wales. When you will not be eligible You will not be eligible if you: live outside England and Wales were in hospital getting free treatment for the whole of the week of 15 to 21 September 2025 and the year before that need permission to enter the UK and your granted leave says that you cannot claim public funds were in prison for the whole of the week of 15 to 21 September 2025 If you live in a care home You can get Winter Fuel Payment if you live in a care home, however, you will not be eligible if both of the following apply: you get Universal Credit, Pension Credit, Income Support, income-based Jobseeker's Allowance (JSA) or income-related Employment and Support Allowance (ESA) you lived in a care home for the whole time from 23 June 2025 or earlier Payments DWP guidance explains: 'You'll get a letter in October or November telling you how much Winter Fuel Payment you'll get, if you're eligible. 'If you do not get a letter but think you're eligible, check if you need to make a claim.' It's important to be aware that scammers may try and trick you into making a claim by text, prompting you to click on a link. This is not an official DWP message and should be deleted. If you think you need to claim, follow the guidance on here. The amount you get is based on when you were born and your circumstances between 15 to 21 September 2025. This is called the 'qualifying week'. Any money you get will not affect your other benefits. If you live alone or no one you live with is eligible for the Winter Fuel Payment You will get either: £200 if you were born between September 22, 1945 and September 21, 1959 £300 if you were born before September 22, 1945 If you live with someone else who is eligible for the Winter Fuel Payment Your payment may be different if you get one of the following benefits: Pension Credit Universal Credit income-based Jobseeker's Allowance (JSA) income-related Employment and Support Allowance (ESA) Income Support If you do not get any of the benefits You will get a payment of: £100 if you and the person you live with were both born between September 22, 1945 and September 21, 1959 £100 if you were born between September 22, 1945 and September 21, 1959 but the person you live with was born before September 22, 1945 £200 if you were born before September 22, 1945 but the person you live with was born between September 22, 1945 and September 21, 1959 £150 if you and the person you live with were born before September 22, 1945 If you and your partner jointly claim any of the benefits One of you will get a payment of either: £200 if both of you were born between September 22, 1945 and September 21, 1959 £300 if one or both of you were born before September 22, 1945 The money will be paid into the bank account your benefits are usually paid into. If you get any of the benefits (not as part of a joint claim) You will get a payment of either: £200 if you were born between September 22, 1945 and September 21, 1959 £300 if you were born before September 22, 1945 If you live in a care home If you are eligible you'll get either: £100 if you were born between September 22, 1945 and September 21, 1959 £150 if you were born before September 22, 1945 When you will get paid DWP said most payments will be made automatically in November or December. You should get a letter telling you: how much you'll get which bank account it will be paid into - this is usually the same account as your State Pension or other benefits Article continues below DWP added: 'If you do not get a letter or the money has not been paid into your account by 28 January 2026, contact the Winter Fuel Payment Centre.'
Daily Record
19 hours ago
- Health
- Daily Record
People making a new claim for PIP most-likely to get ongoing monthly payments of £749
Four groups of people applying for PIP may qualify for a 'light touch' award with a 10-year review. Personal Independence Payment (PIP) - information The Department for Work and Pensions (DWP) has shelved plans to reform Personal Independence Payment (PIP) until a review of the eligibility and assessment process has been completed. Minister for Social Security and Disability Sir Stephen Timms will co-produce the review with disabled groups and charities, which is expected to be completed by next Autumn. The DWP has said that over 1,000 new PIP awards are being issued every day with the latest figures showing there are now 3.7 million claimants in England and Wales receiving between £29.20 and £187.45 every week. It's important to be aware that Adult Disability Payment (ADP) has replaced PIP in Scotland. The data also shows that more than 1.5m (41%) of all 3.7m PIP claimants have been issued with an award of five years or longer. More than 58 per cent of people claiming PIP for a visual disease have a monthly award of up to £749 for five years or more. More than half of all claimants with general musculoskeletal conditions (50.8%) such as arthritis, muscle or joint pain, have been given a longer award, along with 49.5 per cent of people with a neurological condition such as epilepsy, multiple sclerosis and muscular dystrophy. For people thinking about making a new claim for PIP, or ADP, it's important to be aware award lengths cary and can last between nine months and up to 10 years, however, DWP data only records awards given up to 'five years or longer'. The current edition of the PIP Handbook explains the decision maker will make an award of PIP based on the impact of the claimant's health condition or disability on their daily life and their ability to live independently. It adds: 'The length of award will be based upon each claimant's individual circumstances.' It's important to be aware the guidance from the DWP also says most claimants will have their award regularly reviewed, 'regardless of the length of the award' in order to make sure 'everyone continues to receive the most appropriate level of support'. Some claimants will be given a limited term award for a fixed period of up to two years - DWP says these awards will not be reviewed. Limited awards with no review date are given where the claimant's health condition may be reasonably expected to improve. Ongoing awards with a 'light touch' review A 'light touch' review is typically awarded to claimants who have: very stable needs which are unlikely to change over time high level needs which will either stay the same or get worse a planned award review date due on or at State Pension age a special rules for end of life claim due when of State Pension age The DWP guidance states: 'These claimants would not usually be expected to have a face-to-face assessment at review.' PIP and ADP payments are now worth between £29.20 and £187.45 each week, some £116.80 or £749.80 every four-week pay period. Over the course of the financial year, this will see people on the highest awards receive £9,747 in extra cash help. It's important to be aware the maximum amount of £749.80 is based on someone in receipt of the highest award for both the daily living and mobility components. Six conditions with PIP award of five years or longer It's important to be aware people with different health conditions can be awarded PIP for up to five years or longer. The award is based on how the condition affects the claimant. The conditions listed below have the highest percentage rate of five-year or longer awards given to claimants at the end of April 2025. Visual disease 58,685 34,692 Musculoskeletal disease (general) 682,391 341,434 50.8% Neurological disease 468,113 230,412 Respiratory disease 138,376 64,835 Autoimmune disease (connective tissue disorders) 19,542 8,697 Musculoskeletal disease (regional) 426,038 185,916 44.6% Total number of PIP claimants 3,744,671 1,501,215 41% Below is an overview of PIP and ADP. Even though new claims for PIP have been replaced in Scotland by ADP, it shares most of the same eligibility criteria. Full guidance on ADP can be found on the website here. Who might be eligible for PIP or ADP? To be eligible for PIP or ADP, you must have a health condition or disability where you: have had difficulties with daily living or getting around (or both) for 3 months expect these difficulties to continue for at least 9 months You usually need to have lived in the UK for at least two of the last three years and be in the country when you apply. In addition to what we have outlined above if you get or need help with any of the following because of your condition, you should consider applying for PIP or ADP. eating, drinking or preparing food washing, bathing, using the toilet, managing incontinence dressing and undressing talking, listening, reading and understanding managing your medicines or treatments making decisions about money mixing with other people working out a route and following it physically moving around leaving your home There are different rules if you are terminally ill, you will find these on the website here. DWP or Social Security Scotland will assess how difficult you find daily living and mobility tasks. For each task they will look at: whether you can do it safely how long it takes you how often your condition affects this activity whether you need help to do it, from a person or using extra equipment How are PIP and ADP paid? PIP and ADP are usually paid every four weeks unless you are terminally ill, in which case it is paid weekly. It will be paid directly into your bank, building society or credit union account. ADP is paid at the same rates as PIP. PIP and ADP payment rates 2025/26 You will need an assessment to work out the level of financial help you will receive and your rate will be regularly reviewed to make sure you are getting the right support. Payments are made every four weeks. PIP is made up of two components: Daily living Mobility Whether you get one or both of these and how much depends on how severely your condition affects you. You will be paid the following amounts per week depending on your circumstances: Daily living Standard: £73.90 Enhanced: £110.40 Mobility Standard: £29.20 Enhanced: £77.05 How you are assessed You will be assessed by an independent healthcare professional to help the DWP determine the level of financial support, if any, you need, for PIP. Face-to-face consultations for health-related benefits are offered alongside video calls, telephone and paper-based assessments - it's important to be aware the health professional and DWP determine which type of assessment is best suited for each claimant. You can find out more about DWP PIP assessments here. Adult Disability Payment assessments will not involve face-to-face assessments, unless this is preferred by the claimant - find out more about the changes here. How do you make a claim for PIP? You can make a new claim by contacting the DWP, you will find all the information you need to apply on the website here. Before you call, you will need: your contact details your date of birth your National Insurance number - this is on letters about tax, pensions and benefits your bank or building society account number and sort code your doctor or health worker's name, address and telephone number dates and addresses for any time you've spent abroad, in a care home or hospital How to apply for ADP People can apply ADP, over the phone, by post or in-person. To find out more or apply, visit the dedicated pages on here or call Social Security Scotland on 0800 182 2222.
