DWP State Pension warning as new rates delayed for over 12 million claimants

David Bentley
·4-min read

People receiving a State Pension have been warned of a delay in the new rates being implemented. The DWP has put up pensions by 8.5 per cent in line with the triple lock which dictated an increase based on the huge growth in pay last year.

It's one of the biggest increases for the State Pension and follows on from an even larger 10.1 per cent inflation-based rise the year before. But many older people are questioning why their pension has not yet increased, despite the fact we are now in the new financial year.

BirminghamLive has seen many posts submitted to our Facebook Cost of Living group by people asking when they will see the new amounts land in their accounts. The new financial year began on April 6 and all the new DWP and HMRC payment rates came into effect from April 8, the start of the first working week of the 2024/2025 financial year.

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Around 12.6 million people are receiving a State Pension, with around 3.2 million on the New State Pension brought in from April 2016 and the rest on the older pension types that existed before that date.

Anyone claiming their State Pension needs to bear in mind that it is based on weekly rates but usually paid in arrears every four weeks, on the same weekday. You can find out more on all the latest DWP, pension and benefit changes in our Money Saving Newsletter.

The way the State Pension is worked out and paid into accounts means you will need a four-weekly payment period starting on or after the increase comes into force from Monday, April 8 - the start of the first full working week of the new financial year - before the new increase is applied to your entire benefit amount. In practice, this increase will only begin to be fully seen in State Pension payments going into accounts on or after Monday, May 6.

People receiving their State Pension before that won't get the increase - or at least not the full amount. Some will get a mix of old and new rates at first until their next payment date is four complete weeks after April 8.

As the State Pension is based on weekly rates, any payments going in before April 8 will be entirely worked out at the old 2023-2024 rates. After that, amounts going into accounts from April 15 to 19 should be based on three weeks at the old rate and one week at the new rate.

Meanwhile, those paid on dates from April 22 to 26 will see payments based on two weeks at the old rate and two weeks at the new rate. And then those paid on dates from April 29 to May 3 will be based on one week at the old rate and three weeks at the new rate.

Finally, any payments made on or after May 6 will be based on four weeks at the new rate. All the new rates are given below.

New State Pension rates 2024-2025

New State Pension full weekly rate: £221.20 (from £203.85)

Monthly equivalent: £884.80

Yearly equivalent: £11,502 (up £902)

Old State Pension rates 2024-2025

Category A or B basic pension: £169.50 (from £156.20)

Monthly equivalent: £678.00

Yearly equivalent: £8,814 (up £692)

Category B (lower) basic pension (spouse or civil partner's insurance): £101.55 (from £93.60)

Category C or D (non-contributory): £101.55 (from £93.60)

Maximum additional pension (own plus inherited): £218.39 (from £204.68)

Increase of long-term incapacity for age:

  • Higher rate: £28.40 (from £26.60)

  • Lower rate: £14.20 (from £13.30)

Invalidity Allowance (transitional) for State Pension recipients:

  • Higher rate: £28.40 (from £26.60)

  • Middle rate: £18.20 (from £17.10)

  • Lower rate: £9.10 (from £8.55)

See here for a full list including Pension Credit and Widow's Pension rates, which are also going up by 8.5 per cent in many cases. Get breaking news on BirminghamLive WhatsApp . Join our dedicated community to get the latest updates

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