Martin Lewis has outlined the major changes coming to pensions and benefits this April as retirees brace for a welcome boost. From April 6, the new full state pension will rise by 4.1%, in line with the growth in average earnings in the year to May from July 2024. The Money Saving Expert also states that many other benefits will be up by 1.7%, in line with the rise in the consumer prices index in the year to September 2024.
The Labour government’s commitment to the triple lock means that the basic and full rate of the new state pension will be hiked by whichever is highest out of the growth in earnings, the growth in prices, or 2.5%.
The basic state pension will increase from £169.50 per week to £176.45, a rise of £363 a year, and the full rate of the new state pension will increase from £221.20 to £230.25, a rise of £472 a year.
The new full state pension is for those who reached state pension age on or after April 6, 2016. It applies to men born on or after April 6, 1951 and women born on or after April 6, 1953.
The triple lock was first introduced by the Conservative-Liberal Democrat coalition government in 2010. Its purpose is to ensure the value of the state pension was not overtaken by the increase in the cost of living or the incomes of working people.
Chancellor Rachel Reeves has confirmed the Labour government’s commitment to the triple lock until the end of the current Parliament.
Recent figures show there were approximately 12.7 million pensioners in the UK in May 2023, and around nine million are considered to be over 70. The amount of your state pension depends on your National Insurance record – most people need 35 qualifying years to receive the full new state pension, while at least 10 years are required to qualify for any pension at all.
Pensioners who qualify for the basic state pension can also qualify for an “additional” state pension, also known as the State Earnings-Related Pension Scheme (SERPS), which may provide them with some extra financial support.
