MILLIONS of state pensioners will see changes to their payments in the next year.
From changing payment dates to a Christmas cash bonus – here’s what’s happening in the coming months.
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Those receiving the state pension will also benefit from a rise in their payments.
The news comes after the Treasury confirmed that pension payments would rise in line with inflation next year.
Hundreds of thousands of state pensions are also entitled to hundreds in extra cash support so it’s worth checking if you’re eligible for a boost.
Benefit calculators can help you check what you could be entitled to – here’s our guide.
Christmas bonus worth £10 – December
Millions of state pensioners will soon qualify for a tax-free Christmas bonus.
Eligible households will not need to apply for the bonus as it will be paid automatically – but they will need to meet the eligibility criteria.
The tax-free £10 payment is usually made after the qualifying week and before Christmas.
But to qualify for the payment you must be present or “ordinarily resident” in the UK, Channel Islands, Isle of Man, or Gibraltar during the first full week between December 5 and 11.
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You’ll then get the bonus paid into the same account where you normally receive your state pension payments.
You should see it as a payment from “DWP XB” on your bank statement.
Payment dates change – December
If you usually get paid on the 26th or 27th of each month you should be paid on December 23 this year.
That’s because Boxing Day counts as a bank holiday, and the 27th is a “substituted” bank holiday day for Christmas Day and payments aren’t made on these days.
The same goes for if you usually receive your state pension payment on the 2nd of each month as January 2, 2023, is a bank holiday.
If you usually get paid state pension on this day, you’ll get it on December 30, 2022.
Plus, if you usually get paid on the 24th or 25th of each month you should receive your payment on December 23 as the 24th and 25th fall on the weekend this year.
If a payment date lands on the weekend it’s usually made the first working day before then.
You don’t need to do anything if your usual date for getting the state pension falls on a bank holiday.
But you should factor any early payments into your budget and make sure it lasts you long enough to take you through to the next month.
If your payment date falls on a normal date you’ll get your money as usual.
Pensioners receiving other benefits or Universal Credit will also see their payment dates brought forward if they land the Christmas bank holidays.
Payments increase in line with inflation – April
Revealed in the Autumn Budget last week (November 17), Jeremy Hunt confirmed that the triple lock would stay – and pensions would rise in line with inflation.
The move will mean that millions of pensioners will get an £870 rise in their state pension payments.
This means that the full state pension rate of £185.15 per week will increase by £18.70.
It means pensioners would get a total of £10,600 a year.
While the basic state pension will go up £14.35 from £141.85 per week to £156.20.
Over the year, that would be an increase of £746.20 to £8,122.40 in total.
Thousands are missing out on pension credit – so launch claims now
According to the DWP, over 850,000 pensioners are missing out on £1.7billion worth of pension credit payments.
These payments can add an extra £3,300 to an average pensioner’s annual income.
You can start your application up to 4 months before you reach state pension age.
Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.
You’ll need the following information about you and your partner if you have one:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached State Pension age)
Pension credit tops up your weekly income to £182.60 if you’re single or £278.70 if you have a partner.
You may get extra amounts if you have other responsibilities and costs.
For example, if you have a severe disability you could get an extra £69.40 a week or if you care for another adult you could get an extra £38.85 a week.
