State Pension to Increase by 8.5% in April 2024
Millions of grandparents in the UK are set to benefit from a significant pay rise next year. The state pension, which rises annually to keep up with the cost of living, will increase by 8.5% in April 2024. This increase is determined by the triple lock system, which ensures that the state pension rises in line with the highest of three factors: wages for May to July, 2.5%, or September's inflation figures.
Pensioners Could See a Boost of up to £901 per Year
Pensioners on the new state pension could see their annual income increase from just over £10,600 to £11,501, an increase of £901 per year. Weekly payments would also rise from £203.85 to £221.20, an increase of £17.35 per week.
Who Qualifies for the Increased State Pension?
It's important to note that the increased state pension is for those entitled to a "full" new state pension. The amount individuals receive is based on the number of qualifying years they've accrued. Older pensioners who retired before April 2016 will also see an increase, with weekly payments rising from £156.20 to £169.48, and annual payments rising from £8,122.40 to £8,812.96.
Top-Ups for Pension Credit and Attendance Allowance
Retirees on a low income can receive top-ups through Pension Credit, which will rise by 8.5% based on July's wages data. Pension Credit will increase from £201.05 to £218.15 for individuals and from £306.85 to £332.95 for couples. Attendance Allowance, paid to those who need help looking after themselves due to a disability, will also see an increase. The lower rate will rise from £68.10 to £72.66 per week, and the higher rate will rise from £101.75 to £108.56 per week.
How to Claim the State Pension
To claim the state pension, individuals need to apply once they become eligible. A letter explaining how to claim should be received no later than two months before reaching state pension age. It's also worth considering deferring the state pension, as leaving it untouched can increase the eventual amount received. Individuals can request a state pension forecast to understand their eligibility and the potential amount they could receive.
