State Pension payments are provided to people who have reached an eligible age and who have put forward a certain number of National Insurance contributions. The amount is overseen by the Department for Work and Pensions (DWP), responsible for ensuring all pensioners receive the amount to which they are entitled. It is usually the case a person will need at least 10 qualifying years of National Insurance contributions to receive any state pension at all.
However, it is important to note the Government has said some may receive less than the full state pension sum if they were contracted out before April 2021.
The DWP has confirmed the state pension sum will rise next year, and Britons will need to pay attention to see how they are impacted.
Dr Therese Coffey, Secretary of State for Work and Pensions, provided further insight.
She said: “The new rates will apply in the tax year 2021/22, and come into effect on April 12, 2021.
READ MORE: PIP: Britons may be able to get up to £151 for joint pain
Focusing first on the new state pension, the full sum is set to rise, as the Government pledged.
While the full rate currently stands at £175.20, Britons will see an increase to £179.60.
There are also changes due to take place when it comes to the ‘old’ or basic state pension scheme.
While currently, the most a person can receive under the scheme is £134.25 per week, this will also increase.
Individuals on this form of state pension can expect the full sum to rise to £137.65, an increase of some £3.40 per week.
The new sum for the state pension will be provided to Britons automatically from the date it kicks in next month.
Although the increase to the state pension of 2.5 percent has been widely welcomed, there has been speculation about how long increases to the state pension sum will last.
Some have suggested the triple lock mechanism is too expensive for the Government to fairly maintain, particularly due to the rising cost of the pandemic.
In just a few weeks time, Britons may see their payment date of the state pension change.
This is due to the Bank Holiday of Easter Monday, which this year falls on April 5.
As a result, those due to receive their state pension sum on this date are likely to get their money earlier.
Individuals will not need to take any action and the payment should be processed automatically.
Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to [email protected]. Unfortunately we cannot respond to every email.