DWP to hand out £470 to state pensioners

State pensioners who lost Winter Fuel Payment being handed free £470 from DWP
-Credit:Dominic Lipinski/PA Wire


The Department for Work and Pensions (DWP) will grant state pensioners £470 within weeks. The state pension is expected to increase by more than £470 under the Triple Lock.

Those who missed out on the Winter Fuel Payment, worth £300, are being told their payments will rise in line with the Triple Lock pledge. This guarantees the state pension rises each April by whichever is highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5 per cent.

Former pensions minister Sir Steve Webb, now partner at LCP, said: "A slightly higher rate of increase is welcome for pensioners, though will be an unwelcome £100million extra cost for the Chancellor as she prepares her Budget.

ADVERTISEMENT

READ MORE: DWP grants of £69,260 to support people with disability or health condition at work

READ MORE: DWP full list of benefits that will be rising in April 2025

"The rate of the new state pension will now be close to £12,000 per year, very near to the £12,570 tax-free personal allowance. This is likely to put extra pressure on the Chancellor to take action on tax allowances in the coming years."

There are two different types of state pension and which one you claim depends on when you were born. If you're a man born on or after April 6, 1951, or a woman born on or after April 6, 1953, you will claim the new state pension, reports BirminghamLive.

The full new state pension is worth £221.20 a week, or £11,502 a year, but this would go up to £230.30 a week, or £11,975 a year, under a 4.1 per cent rise. The older basic state pension can be claimed if you’re a man born before April 6, 1951, or a woman born before April 6, 1953.

ADVERTISEMENT

The full basic state pension is worth £169.50 a week, or £8,814 a year, but this would rise to £176.45 a week, or £9,175 a year, under a 4.1 per cent increase. However, many pensioners may face higher taxes next year as the full new state pension approaches the current £12,570 tax-free personal allowance.

The exact amount you get for your state pension depends on your National Insurance record. For the new state pension, most people need 35 qualifying years on their National Insurance record to get the full amount. You normally need ten years to get anything at all.

To get more breaking news and top stories delivered directly to your phone, join our new WhatsApp community. Click this link to receive your daily dose of CambridgeshireLive content.

We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.