Pensioners can anticipate receiving a small amount of additional funding starting in April 2021. The yearly state pension increase will proceed because of a new bill, allaying concerns that a decline in average earnings would result in pension payments freezing. Get pension advice from a professional who is perfectly matched to your needs. So how much is the increase? Getting started is easy, fast and free.
The UK government has confirmed that state pensions and other benefits will increase by 3.1% in 2022-2023. This increase will take effect on April 11th, 2022, and will apply to all state pensions, including the basic state pension and the new state pension.
This increase is in line with the Consumer Price Index (CPI) for the year to September 2021. This means that the increase will help to protect pensioners from the rising cost of living.
The government has also confirmed that all other benefits will be increased in line with CPI of 3.1%. This includes working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, Statutory Payments, and Additional State Pension.
Here is a table showing the new state pension rates for 2022-2023:
| Rate | Weekly Amount | Yearly Amount |
|---|---|---|
| New State Pension | £185.15 | £9,627.80 |
| Basic State Pension | £141.85 | £7,339.20 |
Here is a table showing the increase in state pension rates for 2022-2023:
| Rate | Weekly Increase | Yearly Increase |
|---|---|---|
| New State Pension | £5.65 | £288.60 |
| Basic State Pension | £4.40 | £228.80 |
Here are some additional details about the state pension increase:
- The increase will apply to all state pensions, regardless of when the recipient reached state pension age.
- The increase will be paid automatically to all eligible recipients.
- The increase will be taxable.
Here are some resources for more information about the state pension increase:
- The Department for Work and Pensions website: https://www.gov.uk/government/news/state-pension-and-benefit-rates-for-2022-to-2023-confirmed
- The Unbiased website: https://www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/how-much-will-the-pension-increase-be-in-2021
Frequently Asked Questions
How much will the state pension increase by in 2021?
The state pension will increase by 2.5% from 12 April 2021.
How much will the state pension increase by in 2022?
The state pension will increase by 3.1% from 11 April 2022.
How is the state pension increase calculated?
The state pension increase is calculated based on the Consumer Price Index (CPI) for the year to September.
Will all state pensions increase by the same amount?
Yes, all state pensions will increase by the same amount.
When will the state pension increase be paid?
The state pension increase will be paid automatically to all eligible recipients on 11 April 2022.
Will the state pension increase be taxable?
Yes, the state pension increase will be taxable.
Where can I find more information about the state pension increase?
You can find more information about the state pension increase on the Department for Work and Pensions website or the Unbiased website.
The state pension increase for 2022-2023 is good news for pensioners. The increase will help to protect pensioners from the rising cost of living. The government has also confirmed that all other benefits will be increased in line with CPI of 3.1%. This means that the government is committed to supporting pensioners and other vulnerable groups.
Are there any pensioners who won’t see an increase?
You will only be eligible for the state pension increases if you reside in:
- The UK
- Within Switzerland or the European Economic Area (EEA) (Brexit has no bearing on this)
- A nation that permits increases in state pensions under a social security agreement with the UK; you can check the government website to see if your nation is included
You won’t profit from the increase if you live abroad and receive a state pension from the UK.
How much will the state pension increase by in 2021?
State pensions will increase by 2. 5% from 12 April 2021. The kind of state pension you have will determine how much you actually receive.
You will be on the previous program, referred to as the basic state pension, if you became state pension age prior to 2016. If you received it after 2016, you are now eligible for the new state pension program.
The numbers are displayed in the table below, rounded to the closest five pence.
|
New state pension |
Basic state pension |
|
|
2021-22 weekly amount |
£179.60 |
£137.65 |
|
2021-22 yearly amount |
£9,339.20 |
£7,157.80 |
|
Weekly increase |
£4.40 |
£3.40 |
|
Yearly increase |
£228.80 |
£176.80 |