A RECORD number of people are now claiming State Pension and are set to get a bumper boost to their income in April, figures show.
New statistics published by the government this week revealed that the number of people claiming State Pension hit 13million in August 2024, an increase of 203,000 from the previous August.
The number of people claiming State Pension has hit 13million[/caption]
This was a 1.6% rise in the number of people claiming the benefit over a one year period and is the highest figure to date.
Many of those people are set to get a hefty £473 increase to their annual State Pension from April thanks to the government’s triple lock guarantee.
The triple lock ensures the State Pension rises in line with the highest of wages for May to July, September’s inflation figure, or 2.5%.
This year, payments will rise by 4.1% in line with wage growth in the three months to July last year.
This will take the full new State Pension to £11,973 a year, up by £473 from just over £11,502, with a weekly rise from £221.20 to £230.31.
Meanwhile, older pensioners who retired before April 2016 will get £9,175.61 annually, up from £8,812.96, with a weekly rise from £169.48 to £176.45.
Retirees on a low income can get their State Pension topped up via Pension Credit. This benefit will increase by the same amount as the State Pension.
Not everyone will receive the headline amount, however, as what you get depends on how many qualifying years of National Insurance (NI) contributions you have.
And while many retirees will see a bumper rise to their State Pension income in spring, it comes after millions lost the Winter Fuel Payment worth up to £300 this winter.
The government limited the payment to those claiming Pension Credit last year, leaving many pensioners out of pocket and largely wiping out the benefit of this year’s State Pension rise.
Inflation is also creeping back up after falling below the government’s 2% target last year, with the Consumer Prices Index (CPI) measurement of inflation jumping to 3% in the 12 months to January.
This was up by 0.5% from 2.5% in the year to December.
Inflation is the measurement of how quickly prices rise over a period of time. If prices are rising more quickly, this erodes the value of any pay rises.
How do I get the full State Pension amount?
The amount of State Pension you receive depends on your National Insurance (NI) record throughout your adult life.
If you have made at least 35 years of qualifying NI contributions or have received equivalent credits for raising children or providing care, you should get the maximum new State Pension.
If you don’t have 35 years, you may be able to top up your record by paying in voluntary NI contributions.
If you are a man who was born before April 6, 1951 or a woman born before April 6, 1953 then you will get the old state pension.
This has a slightly different system with different payment amounts.
You need 30 years of NI contributions or credits to qualify for the full basic amount, but may get more if you get additional State Pension, or SERPS.
To get any State Pension at all, you will need at least 10 years on your NI record.
You can check your NI record by visiting: gov.uk/check-national-insurance-record.
You can find out more about Pension Credit, including how to apply in our guide.
What will I get when I claim Pension Credit?
SOME people will receive thousands of pounds once they claim Pension Credit, while others will be given just pennies.
But it is still worth making a claim either way as it opens the door to more financial help.
Once you claim Pension Credit you may receive:
- Housing Benefit if you rent – worth thousands a year.
- Mortgage Interest support – on up to £100,000 of your mortgage or loan.
- Council tax discount – worth thousands each year.
- Free TV licence if you are aged over 75 – worth £169.50 a year.
- NHS dental treatment, glasses and transport costs for hospital appointments help.
- Royal Mail redirection service discount – worth up to £48.
- Warm Home Discount if you get Guaranteed Pension Credit – worth £150.
- Cold Weather Payment – worth £25 for every seven day period of cold weather between November 1 and March 31.
- Winter Fuel Allowance – worth up to £300 a year.
