State Pension will be £230 per week from Sunday: From April 2025, millions of pensioners in Britain are going to get relief. According to the government announcement, from now on, the State Pension has been increased significantly, so that pensioners will now be able to get up to £230 per week. This step has been taken to provide relief to the elderly struggling with inflation, as well as it also comes under the Triple Lock Guarantee policy of the British government. In this article, we will know in detail how this increase works, who will get the benefit, how much pension will be given, and what things you should keep in mind.
What is this rule?
- Triple Lock is a government promise under which the pension is increased every year on one of three grounds.
- Consumer Price Index (CPI) i.e. inflation rate.
- Average wage growth, i.e. average salary increase.
- or a minimum of 2.5%.
- The pension increases based on the rate which is the highest among these three. The increase in April 2025 has been decided on the basis of the average salary increase of the previous year, which makes this increase the highest.
How was £230 per week decided?
- At present, the maximum rate of New State Pension was £203.85 per week. But from April 2025, it will increase to around £230 per week.
- This increase is being done under Triple Lock, in which an increase of up to 8.5% is being implemented this time.
- This increase will directly benefit those people who come under the New State Pension Scheme, that is, those who retired after 6 April 2016.
Who will get the full benefit?
- Not everyone will get £230 per week.
- You must have contributed to National Insurance (NI) for at least 35 years.
- You must have retired after the State Pension Age (currently 66 years).
- You must have claimed your pension.
- If you have made NI contributions for fewer years, you will receive a pro-rata pension, or a partial pension, rather than a full pension.
How to claim State Pension?
The State Pension does not start automatically. You have to apply and claim it 4 months before your State Pension Age. You can apply online on the gov.uk website, by telephone or by post.
How is the State Pension paid?
Payments are made directly into your bank account once every 4 weeks.
You can also receive it weekly if you wish, but a special request has to be made for this.
Will all pensioners get the same benefits?
No, there are two types of pension:
Basic State Pension: This is for those who retired before 6 April 2016.
New State Pension: this is for people who retired after 6 April 2016.
This increase is mainly for pensioners on the New State Pension. Although the Basic State Pension will also be increased by a certain percentage, it will not reach £230 per week.
What if your pension is not full?
If you haven’t made your full NI contributions, you can correct your record by making Voluntary National Insurance Contributions. Currently you can make up for the shortfall for up to six years. This can increase your pension amount.
Will pensioners living abroad get this increased pension?
If you live outside the UK and in a country where the Annual Uprating Agreement applies (such as many countries in the European Union), you will get this increased amount. But in some countries, such as Australia, Canada and New Zealand, pensioners living there have a fixed pension – the increase does not apply there.
Is the State Pension taxable?
Yes, if your total annual income is more than £12,570 (Personal Allowance), you may have to pay tax. But many pensioners are limited to an income that does not require them to pay tax.
What will be the wider impact of this increase in the State Pension?
- This increase will help protect pensioners from the effects of inflation.
- Many elderly people will get relief in meeting their expenses.
- This move will cost the government an additional £10 billion, but it is being considered a necessary step for social security.
How to estimate your pension?
You can check your potential pension information by visiting gov.uk/check-state-pension. This tool shows your estimated benefit based on your NI record, claiming age and pension history.
Conclusion:
The decision by the UK government to increase the State Pension to £230 per week is a welcome relief for the elderly citizens of the country. This not only enhances their financial security but also drives them towards self-reliance. If you haven’t yet claimed your pension or completed your NI record, find out today and take the necessary steps.
FAQs
1. What is the new State Pension amount starting April 2025?
A. Starting April 2025, the full new State Pension will rise to approximately £230 per week, up from the previous £203.85.
2. When will the new State Pension increase take effect?
A. The increase will officially take effect from Sunday, the start of the new financial year in April 2025.
3. Who is eligible to receive the full £230 per week?
A. You must have at least 35 qualifying years of National Insurance (NI) contributions and have reached State Pension age to qualify for the full amount.
4. Will everyone receive £230 per week?
A. No. Only those who meet the full NI contribution requirement will get the full amount. Others will receive a pro-rated amount based on their contribution history.
5. What is the reason behind the increase?
A. The increase is based on the UK government’s Triple Lock formula, which raises pensions annually by the highest of inflation, average earnings growth, or 2.5%. This year, average earnings growth (8.5%) triggered the hike.
