The flat-rate state pension will increase by 8.5% to £221.20 per week (up from the previous £203.85 per week) from 6 April 2024. This equates to approximately £11,540 per year or £961 per month.
The increase was confirmed in the Chancellor’s Autumn Statement on 22 November, using the figure for average annual wage growth (including bonuses) for May-July 2023 of 8.5%. There had been some speculation that the slightly lower figure for wage growth excluding bonuses (7.8%) may have been used, but the Government chose to maintain the current “triple lock”.
The state pension was changed to the current flat-rate system in April 2016, intended to simplify the previous system of basic state pension, SERPS, State Second Pension and pension credits. To qualify for the full flat-rate state pension you now require 35 qualifying years of National Insurance contributions or credits.
Those people who were better off under the previous system will still receive the higher amount they were previously entitled to. You may be able to pay voluntary contributions, to fill any gaps in your National Insurance record.
State pension age is currently 66, but will gradually increase to age 67 between 2026 and 2028. There is a further rise to age 68 due between 2044 and 2046, although the Government did consider bringing this increase in earlier, and a further decision on whether this will happen is due to be taken in 2025.
You can check your state pension forecast online at https://www.gov.uk/check-state-pension (please note this link will take you to a UK Government website and we are not responsible for its content) or complete and post the BR19 request form.
You do have to claim your state pension as it will not be paid automatically. It is paid gross but is taxable, so your tax code is likely to change for any other sources of income.
We are always available to discuss any queries or concerns, so just call or drop us an e-mail.