People on New or Basic State Pension can change current monthly payments to every week

People on the New State Pension will receive up to £221.20 each week during the 2024/25 financial year, however, by default payments are typically made every four weeks - equivalent to £884.80. Similarly, someone on the Basic State Pension will be due up to £169.50 per week, some £678 every four-week pay period.

The State Pension currently provides regular financial support for nearly 12.7 million older people across the country, including over one million retirees living in Scotland. But, many of them may not be aware they can increase the frequency of their State Pension payments from every four weeks to weekly.

Changing to weekly, or to four-weekly, could help older people manage their household finances better, according to a former Department for Work and Pensions (DWP) employee with over four decades of experience. The employee, who wishes to remain anonymous, told the Daily Record the simple way people can make the change, whether they are due to retire and claim the State Pension, or are already in receipt of New or Basic payments.

The main thing to be aware of is that the frequency can only be changed if the payments have already been set up to be made into a bank account.

People already on the New or Basic State Pension

The ex-employee told the Daily Record: “If you have already made a claim for State Pension and are in receipt of four-weekly payments, and you want weekly payments, then phone the DWP change of circumstances (Pension Service) telephone number on 0800 731 0469, and request weekly payments.

“Alternatively write to The Pension Service, Post Handling Site A, Wolverhampton WV98 1AF, with your name address and National Insurance number and ask to be changed to weekly payment for your State Pension.”

People about to claim the New State Pension

The former DWP worker explained: “If you are yet to claim your State Pension, put in the information box on the State Pension claim form ‘Please pay my pension weekly’.”

The DWP insider also said the four-weekly pay frequency may make it difficult to budget for household bills as it’s not paid monthly, especially if someone has been used to being paid their salary at the end of each month.

They said: “From your ‘budget point of view’ it may be easier to be paid weekly then you know exactly how much State Pension has been paid into your account each month.

“For some members of the public who are used to being paid their wages weekly, claiming a State Pension which is paid every four weeks, can cause problems financially and make it difficult for them to budget.”

The ex-DWP employee isn’t alone in raising awareness about the payment options.

Back in 2021, BBC Radio 4 Money Box presenter and financial journalist Paul Lewis, highlighted the weekly payment option in the Radio Times. He explained: “Three quarters of all pensioners are paid four weeks in arrears, but a State Pension can also be paid weekly.

“The Government hides this option when people apply, as the application form simply says ‘State Pension is usually paid every four weeks’.”

New State Pension payment rates 2024/25

These payments have risen by 8.5%:

• Full payment rate: £221.20 (from £203.85)

• Every four-week pay period: £884.80 (from £815.40)

Basic State Pension payment rates 2024/25

These payments have risen by 8.5%:

• Category A or B Basic State Pension (full rate): £169.50 (from £156.20)

• Every four-week pay period: £678.00 (from £624.80)

• Category B (lower) Basic State Pension - spouse or civil partner's insurance: £101.55 (from £93.60)

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

Additional pension payments

Increments to the following will rise by 6.7%:

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

Increments to the following will rise by 6.7%

• Basic pension

• Additional pension

• Graduated Retirement Benefit (GRB)

• Inheritable lump sum

Addition at age 80: £0.25 (no change)

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)