Latest news with #Allowance
Daily Mirror
6 days ago
- Business
- Daily Mirror
People on key DWP benefit could get up to £447 every month next year
Attendance Allowance is currently worth either £73.90 or £110.40 each week and is designed to help people of State Pension age with daily living expenses - it does not cover mobility needs. The Department for Work and Pensions (DWP) has released new figures showing that nearly 1.7 million elderly individuals are now receiving extra financial aid through Attendance Allowance. The allowance, currently valued at either £73.90 or £110.40 per week, is intended to assist those of State Pension age with daily living costs - it does not cater to mobility requirements. In Scotland, this benefit has been superseded by the Pension Age Disability Payment (PADP), which adheres to a similar eligibility and payment framework. Both benefits, along with other disability allowances administered by DWP, such as Personal Independence Payment (PIP), Disability Living Allowance (DLA) and Carer's Allowance, are set to increase next year in line with the September inflation rate. This figure is expected to be announced in mid-October, with the benefit uprating confirmed during the Autumn Budget. Recent data from the Office for National Statistics (ONS) indicates that the Consumer Prices Index (CPI) inflation rate for June stood at 3.6 per cent. If the CPI inflation rate remains at 3.6 per cent, the lower rate of Attendance Allowance will increase from £73.90 to £76.55, equating to £306.20 every four-week payment period. Those on the higher rate would see their weekly payments rise from £110.40 to £114.35, totalling £457.40 every four-week pay period. The Scottish Government is responsible for determining the uprating for all devolved benefits, including PADP, and typically aligns with the uprating set by the UK Government under the CPI inflation rate. The confirmed rate will be announced in the Scottish Budget before the year's end, reports the Daily Record. It's crucial to bear in mind that there are still three more CPI inflation rates to be revealed by the ONS before we can definitively ascertain how much Attendance Allowance or PADP will increase from April 2026. Understanding how the uprating is calculated and its current status can aid in future planning. Here's everything you need to know about Attendance Allowance, including the primary health conditions being claimed, eligibility criteria, and how to lodge a claim. Who is eligible to claim Attendance Allowance or PADP? You should consider applying for Attendance Allowance or PADP if you have a disability or illness and require assistance or supervision throughout the day or at certain times during the night - even if you're not currently receiving that help. This could encompass: Help with your personal care - for example getting dressed, eating or drinking, getting in and out of bed, bathing or showering and going to the toilet Help to stay safe You should also consider applying if you struggle with personal tasks, such as those that take a considerable amount of time, cause discomfort or require physical assistance, like needing a chair for support. Attendance Allowance and PADP are not exclusively for individuals with a physical disability or illness. It's also advisable to claim if you require assistance or supervision throughout the day or night due to: a mental health condition learning difficulties a sensory condition - if you are deaf or visually impaired How much could I receive? You could be eligible for either £73.90 (lower rate) or £110.40 (higher rate) per week. This equates to either £295.60 or £441.60 each pay period. The funds can be used however you see fit and could assist in maintaining your independence at home for a longer duration. Potential uses might include: covering taxi fares contributing towards bills hiring a cleaner or gardener Can I claim Attendance Allowance or PADP even if I have savings and other income? Absolutely. Both benefits are not means-tested, so your other income sources or the amount you have in savings are irrelevant - there's no upper limit. Both benefits are also tax-free and exempt from the Benefit Cap, ensuring no deductions from any other benefits. Will Attendance Allowance or PADP impact my State Pension? No, they won't affect your State Pension and you can still claim even if you're currently employed and earning an income. How does Attendance Allowance or PADP influence other benefits? The other perks you may receive could increase if you're eligible for Attendance Allowance or PADP, these include:. Additional Pension Credit Housing Benefit Reduction Council Tax Reduction How do I apply? To apply for Attendance Allowance, you'll need to fill out a lengthy claim form. It might seem intimidating initially, but assistance is available from your local Citizens Advice, so don't let the form deter you from applying. If you'd rather handle it yourself, you can follow the Citizens Advice guide on how to complete your claim form here. Comprehensive instructions on how to obtain the application form by post or over the phone can be found on the website here. What happens if I'm nearing State Pension age? If you're considering applying for Attendance Allowance or PADP upon reaching State Pension age, you might be better off claiming Personal Independence Payment (PIP) or Adult Disability Payment immediately - you could potentially receive more money. Who is ineligible for Attendance Allowance? Elderly individuals residing in Scotland can no longer claim Attendance Allowance and must instead apply for Pension Age Disability Payment. You won't qualify for Attendance Allowance if you're already receiving PIP or Disability Living Allowance (DLA) to cover your care costs. If you apply for Attendance Allowance while receiving DLA, the DWP will typically reassess your DLA award instead. You can renew your PIP or DLA when the current award expires, provided you continue to meet the eligibility requirements. If your renewal is unsuccessful, you have the option to apply for Attendance Allowance instead.
North Wales Live
16-07-2025
- Business
- North Wales Live
HMRC may target state pensioners who breach £597 annual limit
State pensioners have been cautioned they may face bills from HMRC if their earnings exceed £597 annually. Following April's rise, the State Pension climbed by 4.1 per cent under the Triple Lock mechanism, which lifts payments in line with inflation, wage increases or 2.5% - whichever is highest. The complete new State Pension rate now stands at £230.25 weekly, equivalent to £11,973 yearly. However, this leaves pensioners collecting this sum merely £597 short of the £12,570 Personal Allowance threshold. Any income above £12,570 faces 20 per cent tax - rising to 40 per cent beyond £50,270. The Low Incomes Tax Reform Group is now urging the Department for Work and Pensions (DWP) and HMRC to alert pensioners nearing this limit. The organisation stated: "We think that DWP and HMRC should work together to ensure that pensioners are warned about possibly needing to pay tax on their State Pension in future. This should include setting out how the tax will be collected and the likely tax liability." It added: "Some words of warning could, for example, be included with the State Pension notification letters that DWP send out each spring in advance of the April pension increases," reports Birmingham Live. BBC and ITV star Martin Lewis was asked on his recent Sounds podcast: "Explain to me why any pensioner would want to increase their pension? "You will be taxed 20 per cent over £12,570, which means you'll be worse off and you'll be asked to pay more in, you'd then have your benefits stopped if you're below the limit and that takes you below the limit and that takes you over the limit even by 10p." Martin responded: "Let me split that into two. Without being rude, on the first bit you're talking nonsense. Okay, look, tax in this country is marginal. You only pay 20 per cent on the amount above the threshold. "The State Pension has always been taxable if you have other income, it counts as taxable income. So look, let's say you add £1,000 a year to what you earn and that £1,000 is above the threshold. "Yes it's taxed so you only get £800 of it. But you still get £800 more! Tax is marginal, you always want to earn more, you always receive more if you earn more. "You might not get every pound more that you're being given but you're still, the more you earn the more you get, so the tax thing, that's a red herring." He added: "The other one isn't - for those on very low incomes if you may be eligible for Pension Credit and you don't have any other income, the Pension Credit effectively tops you up to the full State Pension anyway so if you're gonna buy years to top you up to the full State Pension as it is possible that you would have simply got it via pension credit anyway."
Daily Mirror
11-07-2025
- Business
- Daily Mirror
Pensioners await July 17 hint that may point to future payments
The most recent data from the Office for National Statistics (ONS) indicates that UK inflation fell to 3.4 per cent in May, a slight decrease from 3.5 per cent in April Nearly 13 million State Pensioners across Great Britain should keep an eye on the Consumer Price Index (CPI) inflation rate this month. That's because it plays a pivotal role in the Triple Lock measure that determines the annual increase state pensioners get in payments. The latest data from the Office for National Statistics (ONS) shows that UK inflation dropped to 3.4 per cent in May, a slight dip from 3.5 per cent in April. The yearly growth in employees' average wages for regular earnings (excluding bonuses) was recorded at 5.6 per cent and total earnings (including bonuses) stood at 5.5 per cent. Under the Triple Lock measure, State Pensions rise each year in line with whichever is the highest of average annual earnings growth from May to July, CPI in the year to September or 2.5 per cent. So at the moment, the earnings figure is the one that will decide payments - but of course things could change. In April, the New and Basic State Pension saw an increase of 4.7 per cent, meaning someone on the full New State Pension currently receives £230.25 per week, or £921 every four-week pay period. Those on the full Basic State Pension receive £176.45 each week, or £705.80 every four-week pay period, reports the Daily Record. State Pension uprating predictions for 2026/27 Looking ahead to the State Pension uprating predictions for 2026/27, the Triple Lock is currently set to be determined by the earnings growth element, which presently stands at 5.5 per cent. However, this figure may fluctuate and isn't the final metric that will determine the level of uprating. The next CPI figure will be released by the ONS on July 17. A potential 5.5 per cent increase on the current State Pension could result in the following payouts: Full New State Pension Weekly: £242.90 Four-weekly pay period: £971.60 Annual amount: £12,630.80 Full Basic State Pension Weekly: £186.25 Four-weekly pay period: £744.60 Annual amount: £9,679.80 The official annual uprating won't be confirmed until the Autumn Budget, but pensioners - and those due to retire next year - can start to plan their finances by following the Triple Lock measurements. The September CPI figure will be published in mid-October, while the wages growth figure is usually released in August. What is taxed Guidance on states: 'You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates. Your total income could include: the State Pension you get - Basic or New State Pension Additional State Pension a private pension (workplace or personal) - you can take some of this tax-free earnings from employment or self-employment any taxable benefits you get any other income, such as money from investments, property or savings READ MORE: 'When doctors finally told me what my rash was, I considered dying' Check if you have to pay tax on your pension Before you can check, you will need to know: if you have a State Pension or a private pension how much State Pension and private pension income you will get this tax year (April 6 to April 5) the amount of any other taxable income you'll get this tax year (for example, from employment or state benefits) You cannot use this tool if you get: any foreign income Marriage Allowance Blind Person's Allowance Use this online tool at to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on here.
India.com
10-07-2025
- Business
- India.com
7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by…
Home Business 7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by… 7th Pay Commission Massive Update: Govt employees likely to get DA likely of 4 percent From THIS month, announcement by… Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55 percent to 59 percent. 7th Pay Commission: Centre (Representational Image) 7th Pay Commission: The Modi government is likely to increase the Dearness Allowance (DA) of Central government employees from 55 percent to 59 percent, effective July 2025. According to the reports, this anticipated adjustment is based on recent inflation data, particularly the rise in the All India Consumer Price Index for Industrial Workers (AICPI-IW). It is important to note that this DA hike i.e for July-December period, is going to be the last DA hike under the 7th Pay Commission because from January 2026 the government has announced to implement the 8th Pay Commission. According to the data released by Labour Bureau, attached office of the M/o Labour & Employment the All-India CPI-IW for May 2025 increased by 0.5 point and stood 144.0 (one hundred forty four). Year-on-year inflation for the month of May 2025 stood at 2.93 percent as compared to 3.86% in May, 2024. The Bureau has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. DA Hike Formula Under 7th Pay Commission Dearness Allowance is revised biannually, in January and July, based on the average AICPI-IW data over the past twelve months. The formula for calculating DA is: A (%) = [(Average CPI-IW for past 12 months – 261.42) / 261.42] 100. Using this calculation method, the expected hike is estimated at 4 percent. Will The Last Dearness Allowance Hike Under 7th Pay Commission Be Bigger Than Last Time? The rise in AICPI-IW figures over the past three months — March, April, and May — suggests that the expected Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners could reach approximately 58.08%. Based on these numbers, media reports have estimated a 4% hike in DA effective from July 2025, potentially increasing it from the current 55% to 59%. This adjustment is anticipated ahead of the implementation of the 8th Pay Commission in January 2026. Announcement Expected in September or October It is important to note that the DA hike will take effect from July, however, the official announcements typically occur later. In previous years, such revisions have been disclosed in September or October, often coinciding with the festive season. This year, the announcement is also anticipated around Diwali. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on
Daily Mirror
10-07-2025
- Business
- Daily Mirror
Millions of pensioners unaware they are missing out on thousands
Millions of pensioners could be affected (Image: Getty Images/iStockphoto) Many of the 13 million pensioners across the UK may not realise that they could be eligible for two separate benefits worth a combined total of up to £10,040 over the current financial year. One of these benefits is not means-tested and aims to assist older people with long-term health conditions, while the other can provide additional financial support to those on a low income. Pension Credit is designed to help those over State Pension age on a low income by boosting their annual income by an average of £4,300. Meanwhile, Attendance Allowance can offer extra financial support of up to £441.60 each month - equating to some £5,740.80 each year. Both these payments are made separately from the State Pension, which is worth up to £230.25 each week, or £921 every four-week payment period. As reported by the Daily Record, the Department for Work and Pensions (DWP) estimates that more than 700,000 people are eligible for Pension Credit, but are not claiming this income-related benefit. It is believed that more than one million pensioners are eligible for Attendance Allowance, which is not affected by income or savings, is tax-free and is not counted as income when claiming Pension Credit, reports Lancs Live. Currently, Pension Credit is assisting 1.4 million individuals. It boosts weekly income to a guaranteed minimum level of £227.10 for single pensioners or £346.60 for couples. This year, it is worth an average of £4,300. If you are a single person on the New State Pension with a total weekly income below £227.10, or part of a couple with a combined weekly income of less than £346.60, you might be eligible for Pension Credit. Even an award of just £1 per week can unlock access to other financial support, including Council Tax discounts and help with heating bills this winter through the Warm Home Discount Scheme. In May 2019, the law changed so that a 'mixed age couple' - a couple where one partner is of State Pension age and the other is under it - are considered to be a 'working age' couple when checking entitlement to means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age. If you qualify for Pension Credit, you can also get other help. The quickest way to check eligibility for Pension Credit is online. Older people, or their friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on here. Alternatively, pensioners can ring the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday. More information about claiming Pension Credit can be found on Currently, nearly 1.7 million older people across Great Britain are assisted by the Attendance Allowance. This support helps with the additional daily living costs associated with having a physical or mental health condition, disability, or long-term illness. It is important to note that you can make a claim even if you do not have someone caring for you. Those over the State Pension age who claim Attendance Allowance receive either £73.90 (lower rate) or £110.40 (higher rate) each week. As this benefit is typically paid every four weeks, this equates to either £295.60 or £441.60 per payment period - totalling around £5,740.80 over the 2025/26 financial year. You should consider applying for Attendance Allowance if you have a disability or illness and require assistance or supervision throughout the day or at times during the night - even if you're not currently receiving that help. You should also consider applying if you find personal tasks challenging, for example, if they take a considerable amount of time, cause discomfort, or if you require physical support, such as leaning on a chair. Bear in mind, Attendance Allowance is not solely for those with a physical disability or illness. Attendance Allowance is not means-tested, which means it does not matter what other income you have or how much savings you have accumulated - there is no upper limit. It is also tax-free and you will be exempt from the Benefit Cap, so you will not have money deducted from any other benefits you're currently receiving. You can also claim it even if you are still employed and earning an income. To apply for Attendance Allowance, you'll need to fill out a comprehensive claim form. While it may seem daunting initially, help is available from Citizens Advice and Independent Age. Complete information on how to get the application form by post or over the phone can be found on the website here.
