Millions of grandparents to get pay rise next year – check if you qualify
MILLIONS of grandparents are set to benefit from a bumper pay rise next year.
The state pension rises every year to keep up with the cost of things like food and household bills.
It has now been confirmed that payments will increase by 4.1% in April 2025.
That's because the triple lock system sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or September's inflation figures.
Growth in employees' average total pay was 4.1% in the three months to July, while the UK's rate of inflation fell to 1.7% in September.
It means pensioners on the new state pension will receive a further £473 a year.
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This is up from just over £11,502 to £11,973 a year, and a weekly rise from £221.20 a week to £230.25.
It's important to note though that this is for those entitled to a "full" new state pension.
How much individuals get is based on the number of qualifying years they've accrued.
Older pensioners who retired before April 2016 will get a weekly rise from £169.48 to £176.45, and an annual rise from £8,812.96 to £9,175.61.
Other elements of the old state pension system, mainly "additional" state pensions such as SERPS, will rise in line with the increase in CPI inflation for September which was 1.7%.
Retirees on pension credit and attendance allowance will also be getting a top-up.
But the increases are different for each one, here we explain each.
Pension Credit
Retirees on a low income can get it topped up via Pension credit.
Guaranteed pension credit payments will go up from £218.15 a week to £221.86, or £332.95 to £338.61 for couples.
You may also get the "Savings Credit" part of pension credit if both of the following apply:
- You reached state pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension
This part of pension credit will rise from £17.01 a week to £17.30 or for couples, from £19.04 to £19.36.
There are also top-up amounts, for instance, if you're caring for someone else or are disabled.
You can find out more about Pension Credit including how to apply in our guide.
Crucial to claim Pension Credit if you can
HUNDREDS of thousands of pensioners are missing out on Pension Credit.
The Sun's Assistant Consumer Editor Lana Clements explains why it's imperative to apply for the benefit..
Pension Credit is designed to top up the income of the UK's poorest pensioners.
In itself the payment is a vital lifeline for older people with little income.
It will take weekly income up to to £218.15 if you’re single or joint income to £332.95.
Yet, an estimated 800,000 don't claim this support. Not only are they missing on this cash, but far more extra support that is unlocked when claiming Pension Credit.
With the winter fuel payment - worth up to £300 now being restricted to pensioners claiming Pension Credit - it's more important than ever to claim the benefit if you can.
Pension Credit also opens up help with housing costs, council tax or heating bills and even a free TV licence if you are 75 or older.
All this extra support can make a huge difference to the quality of life for a struggling pensioner.
It's not difficult to apply for Pension Credit, you can do it up to four months before you reach state pension age through the government website or by calling 0800 99 1234.
You’ll just need your National Insurance number, as well as information about income, savings and investments.
Attendance allowance
is paid to people who've reached state pension age and need help looking after themselves because of a physical or mental disability.
To get the benefit, you must have been in Britain for at least two of the last three years unless you’re a refugee or have humanitarian protection status.
If you live in a care home and pay for all the costs yourself, you'll be able to claim attendance allowance.
It's paid at two different rates and how much you get depends on the level of care that you need because of your disability.
The higher rate will rise from £108.55 to £110.40 in April, while the lower rate will also go up from £72.65 to £73.89.
To apply, you'll need to download the attendance allowance form on the GOV.UK website and then send it by post.
It should be sent to the address: Attendance Allowance Unit, Mail Handling Site A, Wolverhampton WV98 2AD.
If you're unable to print the form yourself, you can call the attendance allowance helpline on 0800 731 0122 and ask for a copy to be sent to you.
It's worth applying, especially as you may get extra pension credit and housing benefits or a council tax reduction if you receive attendance allowance.
The application form is very long and asks for a lot of personal information.
If you think you'll need help filling in the form, you should get a friend, relative or adviser to help you complete it if possible.
How much state pension will I actually get?
The amount of new state pension you receive depends on your National Insurance (NI) record throughout your adult life.
If you have made at least 35 years of qualifying NI contributions, you may qualify for the maximum amount, outlined above.
The same is true if you have received equivalent credits on your NI record for raising children or providing care.
If you don’t have 35 years, you may be able to top up your record by paying in voluntary NI contributions.
To get the full basic state pension you will need 30 years of NI contributions or credits.
To get any state pension at all, you will need at least 10 years on your NI record.
What age do I get the state pension?
In response to rising life expectancy, the age at which you become eligible to receive the state pension has been going up.
The age is now 66 for both men and women and is set to reach 68 by 2039.
How do I claim the state pension?
You won’t automatically get the state pension - you need to claim it once you’re eligible.
You should receive a letter no later than two months before you reach state pension age, explaining what to do.
You can find out more on the GOV.UK website.
You can choose to defer getting the state pension - you don't have to take it as soon as you are eligible when you reach state pension age.
Leaving your state pension untouched can boost the amount you eventually get.
If you opt to defer your state pension, your entitlement increases by the equivalent of 1% for every five weeks you do so.
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As the state system can be tricky to navigate, a key part of any pension planning involves requesting a state pension forecast.
This will help you get your head around how much you could be eligible to receive, and from what age.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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