The full state pension has been predicted to rise by £460 a year from next April, based on wage-increase data from the Office for National Statistics, which said total pay increased by 4% in the three months to July.
While this is the lowest increase for nearly four years, it will mean pensioners who reached state pension age after April 2016 can expect to see their full, flat-rate state pension go up to £11,962.60 a year from next April – a rise of £8.35 a week.
Under the triple lock guarantee, the state pension increases every April in line with whichever is the highest of average total earnings growth in the year from May to July of the previous year, CPI inflation in September of the previous year or 2.5%.
As inflation is not expected to be higher than wage growth, the wages figure is likely to be used for the calculation. But the figures are subject to possible revisions in next month’s data and the Government will confirm the planned increase in the autumn.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, cautioned that the rise in the state pension will only partly offset the pain for the millions of pensioners who are being stripped of their winter fuel allowance.
She said: “There’s every chance it’s not enough to placate those pensioners still reeling from the loss of the winter fuel payments, especially given how close this is edging to busting the personal allowance.”
But who is eligible for the state pension and how should people set about claiming it? Here is what we know.
What is the state pension?
The state pension is a regular payment made to pensioners from the government when they reach a certain age.
Not everyone gets the same amount and how much you get depends on your national insurance record.
For many people, the state pension is only part of their retirement income. For example, they may have money from a workplace pension, a private pension and earnings as well.
Who gets the state pension?
Britons are able to claim the new state pension when they reach a certain age. Men born on or after 6 April 1951 or women born on or after 6 April 1953 can claim the new state pension.
You’ll also need 10 qualifying years on your national insurance record to get the new state pension. The full rate of the new state pension is currently £221.20 a week.
How to claim for the state pension?
People do not just get the state pension automatically – they have to claim it and can do so by following the link here.
They will need some paperwork and dates, including the date of their most recent marriage, civil partnership or divorce, the dates of any time spent living or working abroad, bank or building society details plus any social security numbers for foreign state pension schemes
Claims can also be made by phone and post.
