Is state pension going up this year? All the changes you need to know

The government has outlined a number of changes to benefits like the universal loan in 2021 – but what about the state pension? Is that going up too?

A few changes will be made this April, which we discussed in more detail below.

From October 6, 2020, the retirement age for men and women rose to 66 years.

Further increases are planned. The state retirement age will be raised to 67 between 2026 and 2028. Between 2037 and 2039 it will be increased again to 68 years, seven years earlier than planned.

Labor said the increase to 68 marked an “amazing continuation of austerity” and meant 34 million people would have to work longer than their own plans to keep the retirement age at 66.

Labor and Pensions Minister David Gauke said the government needs to find a balance between funding the state pension and being fair to future generations of taxpayers.

He pointed out that, due to increased life expectancy, those affected are still expected to do more than previous generations.

Research also shows that tens of thousands of women may be eligible for more state pensions than they currently receive.

Under the old rules of the state pension system, married women could claim a basic pension of 60 percent of the full rate, based on their husband’s social security contributions.

This could only happen if the amount was greater than the amount they would receive based on their own contributions.

As of March 17, 2008, this should have been done automatically, but it has been estimated that tens of thousands of women have not received the increased amount, the Daily Express reported. Contact the Pension Service if you think you may be affected.

The state pension is now increasing in April. If you want to know how much you will get, check out the details below.

The state pension increases in accordance with a triple lock policy.

Since 2011, the triple lock regulation means that the state pension is increased by one of the three highest things:

  • 2.5 percent
  • Earnings growth
  • Inflation rates

However, the effects of the coronavirus have created an imbalance. With both income and inflation falling during the Covid pandemic, the highest of the three factors above is the option to increase it by 2.5 percent.

The existing regulations would therefore mean a sharp increase in the state pension by 2.5 percent in April 2021.

And then if wages recover, when the economy recovers in 2022, that would be the highest of the three options and it would trigger an even bigger hike in state pensions this April.

New state pension – 2020/2021 rates and 2021/2022 rates

Full Rate – £ 175.20 increases to £ 179.60

Transition rate below full rate – 3.9146% rises to 2.5114%

Protected payment – 1.70% drops to 0.50%

Increments – own (based on the deferred new state pension) 1.70% drops to 0.50%

Increments – inherited (based on the deferred old state pension) 1.70% decreasing to 0.50%

Old State Pension 2020/2021 rates and 2021/2022 rates


Category A or B Basic Pension – £ 134.25 increases to £ 137.60

Category B (lower) Basic Spouse or Life Partner Insurance – £ 80.45 increases to £ 82.45

Independent of contribution category C or D – £ 80.45 to £ 82.45

Additional pension

Additional pension – 1.70% decrease to 0.50%

Maximum Supplementary Pension (self and inherited) – £ 179.41 increased to £ 180.31


Basic pension – 1.70% decreased to 0.50%

Additional pension – 1.70% decrease to 0.50%

Graduated retirement pension – 1.70% drops to 0.50%

Inheritable flat rate – 1.70% drops to 0.50%

Attendance Allowance – Usually every 4 weeks

Care allowance – Weekly in advance or every 4 weeks

Child benefit – Usually every 4 weeks – or weekly if you are a single parent or if you or your partner are receiving certain benefits

Housing allowance for the disabled – Usually every 4 weeks

Labor and Support Allowance – Typically every 2 weeks

Income Support – Usually every 2 weeks

Unemployment benefit – Usually every 2 weeks

Pension Credit – Typically every 4 weeks

Personal Independence Payment – Usually every 4 weeks

State Pension – Usually every 4 weeks

Tax credits, such as B. Labor Tax Credits – Every week or every 4 weeks

Universal Loan – Every Month (Except Scotland and Northern Ireland)

Outsourced print

The contractually agreed deduction by AP in relation to the contractually agreed result prior to April 1988 – zero – remains unchanged

Outsourced AP deduction in relation to outsourced profits from April 1988 to 1997 -1.70%, decreasing to 0.50%

Graduated retirement pension

Graduated retirement pension (unit) – 0.1440 to 0.1447

Increase in long-term old age

Increase in long-term old age disability – 1.70% to 0.50%.

Age 80 additionally

Addition at the age of 80 – 0.25 remains unchanged

Increase in long-term old age

Higher Rate – £ 23.30 increases to £ 23.40

Lower rate – £ 11.70 increase to £ 11.75

Invalidity allowance (transitional allowance) for state pensioners

Higher Rate – £ 23.30 increases to £ 23.40

Medium Rate – £ 14.90 increases to £ 15.00

Lower Rate – £ 97.45 increases to £ 97.50


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