Latest news with #StatePensions
Yahoo
01-08-2025
- Business
- Yahoo
Full list of the DWP benefits and pensions changes due this month
Universal Credit, State Pensions, Child Benefit, PIP and other benefits may be affected by changes due to the August bank holidays later month. August 25, 2025, is a bank holiday where payments from the Department for Work and Pensions (DWP) won't be made. If you are due to receive a DWP benefit payment on either day, you may find you receive it early. If your payment is due on a different day, it will arrive in your account as normal and the amount you are due to be paid will remain the same. When a payment date falls on a weekend or a bank holiday, then the Department for Work and Pensions says the claimant is generally paid on the working day before, but this can vary. Most payments due on Monday, August 25, 2025, will instead be made early, with most arriving on Friday, August 22. These are the benefits that may be affected by the bank holiday weekend: Attendance Allowance Carer's Allowance Child Benefit Disability Living Allowance Employment and Support Allowance Income Support Jobseeker's Allowance Pension Credit Personal Independence Payment (PIP) State pension Tax Credits Universal Credit While you may be paid earlier in some cases, the money will also have to last you longer, as payment dates will return to normal afterwards. Recommended reading: DWP urgent changes after £60 taken from claimants' benefits 31 restaurants, cafes and pubs where kids eat free or for £1 this summer DWP state pensions underpaid by £800 million - check your payments The DWP confirmed the early payment policy on its official website, stating: 'If your payment date is on a weekend or a bank holiday, you'll usually be paid on the working day before.' While the amount being paid out will stay the same, experts are warning that the earlier date could throw off people's budgeting, especially as the cost-of-living crisis continues to bite. The two remaining bank holidays for 2025 fall on Christmas Day and Boxing Day.
Daily Record
24-07-2025
- Business
- Daily Record
People due to retire need to claim New State Pension or first payment will be delayed
The first payment might also be higher or lower than expected even with full National Insurance contributions. The latest statistics from the Department for Work and Pensions (DWP) show the State Pension currently provides regular financial support for nearly 13 million older people across the country, including over one million retirees living in Scotland. This payment is available for those who have reached the UK Government's eligible retirement age, which is currently 66 for both men and women, and have paid at least 10 years' worth of National Insurance Contributions. However, people approaching the official age of retirement this year may not be aware that the State Pension is regarded as a contributory benefit and is not paid automatically by the DWP. The payment needs to be claimed, or retirees could face a delay in receiving their first payment of up to £230.25 each week, or £921.00 every four-week pay period. The money is not paid automatically when someone reaches State Pension age as some people choose to defer making a claim in order to keep working and generate more towards their pension pot, especially if they have not paid the full quota of 35 years' worth of National Insurance Contributions, or were 'contracted out'. DWP guidance explains: 'You do not get your State Pension automatically - you have to claim it. You should get a letter no later than two months before you reach State Pension age, telling you what to do.' It then clarifies you can either claim your State Pension or delay (defer) claiming it. It states: 'If you want to defer, you do not have to do anything. Your pension will automatically be deferred until you claim it.' Which means, unless you respond to the letter confirming you want to start claiming State Pension, you will not receive any payments as the DWP will interpret no response as a wish to defer. Deferring your State Pension could increase the payments you get each week when you decide to claim it, as long as you defer for at least nine weeks. Your State Pension increases by the equivalent of 1% for every nine weeks you defer, this works out as just under 5.8% for every 52 weeks. The extra amount is paid with your regular State Pension payment, however, it's important to be aware any extra payments you get from deferring could be taxed - find out more on here. it's also important to be aware deferred State Pensions increase each year in line with the September Consumer Price Index (CPI) inflation rate and not the highest measure of the Triple Lock policy. State Pension payments Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Your first payment Your first payment will be within five weeks of reaching State Pension age and you will get a full payment every four weeks after that. You might get part of a payment before your first full payment. The letter will tell you what to expect. You can also choose to receive your State Pension payments weekly or fortnightly which will result in a shorter delay for the first payment - find out more here. Your State Pension payment day The day your State Pension is paid depends on your National Insurance number. Last two digits of your National Insurance number: 00 to 19 - paid on a Monday 20 to 39 - paid on a Tuesday 40 to 59 - paid on a Wednesday 60 to 79 - paid on a Thursday 80 to 99 - paid on a Friday DWP 'starting amount' for the new State Pension If you have qualifying years on your National Insurance record as at April 5, 2016, DWP works out a 'starting amount' for you for the new State Pension. It is the higher of either: the amount you would have got under the previous State Pension system up to 6 April 2016, or the amount you would get on your record to 6 April 2016 if the new State Pension had been in place at the start of your working life Both amounts reflect any periods when you were contracted out of the Additional State Pension. Your 'starting amount' could be less than, more than or equal to the full new State Pension. If your 'starting amount' is less than the full amount of the new State Pension Each 'qualifying year' you add to your National Insurance record after April 5, 2016 will add a certain amount (about £6.57 a week, this is £230.25 divided by 35) to your 'starting amount', until you reach the full amount of the new State Pension or you reach State Pension age, whichever happens first. If your 'starting amount' is more than the full amount of the new State Pension You will get this higher amount when you reach State Pension age. It is possible to have a starting amount higher than the full new State Pension if you have some Additional State Pension. The difference between the full new State Pension and your 'starting amount' is called your 'protected payment'. If your 'starting amount' is equal to the full new State Pension You will get the full new State Pension when you reach State Pension age. How can I find out how much State Pension I could get? You can get a State Pension forecast online from the Check your State Pension service here. This provides personalised information, including your State Pension age, an estimate of how much State Pension you may get at that point and if you can increase this amount. It also allows you to view your National Insurance contribution history. More information about deferring your State Pension can be found on the website here.
Daily Record
23-07-2025
- Business
- Daily Record
Older women urged to check for State Pension back payments worth over £8,300
The Department for Work and Pensions (DWP) has said that between January 8, 2024 and March 31, 2025, a joint State Pensions corrections exercise with HM Revenue and Customs (HMRC), identified 12,379 State Pension underpayments to women whose National Insurance (NI) records are incorrect. In 2022, the DWP became aware of a number of State Pension cases where it appeared that historic periods of Home Responsibilities Protection (HRP) were missing, leading to inaccurate State Pension payments. So far, around £104 million in arrears have been paid out, with an average payment of £8,377. Retirement expert Helen Morrissey is urging older people to complete the online form or contact the Pension Service if they think they have been affected after new research from the DWP showed the main reasons why those who have received a letter from HMRC asking them to check their State Pension - as it could be wrong - have failed to do so. HMRC has sent out more than 370,000 letters - mostly to women - urging them to check their State Pension payments as they may be lower than they are entitled to. However, the DWP research indicates that the majority of people contacted by letter did not go on to apply for HRP. Barriers included: Not understanding the letter Thinking the communication was a scam Reliance on digital methods to put in a claim HRP was a scheme designed to help protect parents' and carers' entitlement to the State Pension and was replaced by NI credits from April 6, 2010. HMRC is using NI records to identify as many people as possible who might have been entitled to HRP between 1978 and 2010 and have no HRP on their NI record. After May 2000, it became mandatory to include a NI number on claims so people claiming after this point will not have been affected. The head of retirement analysis at Hargreaves Lansdown, said: 'This research lays bare the complexities the government faces in resolving the long running issue of underpaid State Pensions. The State Pension system has become so confusing that even when the UK Government has communicated with those who may have a claim, the complexity and jargon has put many of them off. This means many thousands are getting less than they are entitled to. 'Issues identified by the government include the use of jargon. Many simply didn't understand what was being asked of them -that mistakes made decades ago had been identified and could be rectified. 'Terms such as Home Responsibilities Protection haven't been used for many years - it's understandable that people may have little recollection as to whether they claimed it or not. 'The reliance on online forms to claim refunds was also a significant barrier, with many not feeling internet savvy enough to navigate the system without help.' Ms Morrissey continued: 'Notably many people decided not to take action because they feared doing so might actually reduce their state pension or they were scared that they had been targeted by scammers. It's clear the government faces an uphill battle if it is to successfully reunite those affected with their extra pension payments. 'The introduction of the New State Pension system in 2016 was meant to simplify things - and it should, but again challenges remain for these younger groups. Those who opted out of Child Benefit because of the High-Income Child Benefit Charge will not have known that by doing so they risk missing out on National Insurance credits towards their State Pension.' The UK Government has put measures in place to deal with this, but Ms Morrissey warns it remains something that can 'trip people up and so awareness needs to be raised on an ongoing basis'. The retirement expert added: 'Encouraging people to check their State Pension record to see if there are any gaps is vital - if there are mistakes, then they have time to correct them. 'If the gap has occurred during a period of time when they qualified for a benefit, such as Child Benefit, then they can backdate a claim and get the gaps filled for free. There's also the option of paying for voluntary contributions to make sure you get the most from your state pension.' How to use the online HRP tool You may still be able to apply for HRP, for full tax years (6 April to 5 April) between 1978 and 2010, if any of the following were true: you were claiming Child Benefit for a child under 16 you were caring for a child with your partner who claimed Child Benefit instead of you you were getting Income Support because you were caring for someone who was sick or disabled you were caring for a sick or disabled person who was claiming certain benefits You can also apply if, for a full tax year between 2003 and 2010, you were either: Who qualified automatically for HRP The guidance on explains that most people got HRP automatically if they were: getting Child Benefit in their name for a child under the age of 16 and they had given the Child Benefit Office their National Insurance number getting Income Support and they did not need to register for work because they were caring for someone who was sick or disabled If your partner claimed Child Benefit instead of you If you reached State Pension age before April 6, 2008, you cannot transfer HRP. However, you may be able to transfer HRP from a partner you lived with if they claimed Child Benefit while you both cared for a child under 16 and they do not need the HRP. They can transfer the HRP to you for any 'qualifying years' they have on their National Insurance record between April 1978 and April 2010. This will be converted into National Insurance credits. Married women or widows You cannot get HRP for any complete tax year if you were a married woman or a widow and: you had chosen to pay reduced rate Class 1 National Insurance contributions as an employee (commonly known as the small stamp) you had chosen not to pay Class 2 National Insurance contributions when self-employed If you were caring for a sick or disabled person You can only claim HRP for the years you spent caring for someone with a long-term illness or disability between April 6, 1978 and April 5, 2002. You must have spent at least 35 hours a week caring for them and they must have been getting one of the following benefits: Attendance Allowance Disability Living Allowance at the middle or highest rate for personal care Constant Attendance Allowance The benefit must have been paid for 48 weeks of each tax year on or after April 6, 1988 or every week of each tax year before April 6, 1988. You can still apply if you are over State Pension age. You will not usually be paid any increase in State Pension that may have been due for previous years. If you were getting Carer's Allowance You do not need to apply for HRP if you were getting Carer's Allowance. You'll automatically get National Insurance credits and would not usually have needed HRP. If you were a foster carer or caring for a friend or family member's child You have to apply for HRP if, for a full tax year between 2003 and 2010, you were either: a foster carer caring for a friend or family member's child ('kinship carer') in Scotland All of the following must also be true: you were not getting Child Benefit you were not in paid work you did not earn enough in a tax year for it to count towards the State Pension If you reached State Pension age on or after 6 April 2010 Any HRP you had for full tax years before April 6, 2010 was automatically converted into National Insurance credits, if you needed them, up to a maximum of 22 qualifying years. A full overview of HRP can be found on here.
Daily Record
22-07-2025
- Business
- Daily Record
New DWP update on future plans for State Pension Triple Lock
The Triple Lock policy determines the State Pension uprating from April each year. Under the Triple Lock, the New and Basic State Pensions increase each year in-line with whichever is the highest between average annual earnings growth from May to July, Consumer Price Index (CPI) inflation in the year to September or 2.5 per cent. Over the 2025/26 financial year, the State Pension will cost the UK Government an estimated £145.6 billion. However, Work and Pensions Secretary Liz Kendall announced on Monday that a long-term commitment to theTriple Lock is not in the scope of the resurrected Pensions Commission. The Commission last met in 2006 to tackle the issue of working age adults failing to put enough money into their retiremen t savings. Experts have warned that people looking to retire in 2050 are on course to receive £800 per year less than current State Pensioners. The commission is expected to provide recommendations for how to boost retirement income in 2027. Ms Kendall was asked if she thought it was impossible to maintain the Triple Lock guarantee given its cost and if she could guarantee it would be in Labour's next manifesto. She said: 'The Triple Lock is out of scope of the commission. We've got a very clear commitment to that for the entirety of this Parliament. 'And what we're asking the commission to do is genuinely look medium to longer term, the middle of this century, and how the state pension and second pensions work together.' The Office for Budget Responsibility recently said that the Triple Lock has already cost three times more than initially expected and suggested it was unaffordable in the long term. The Labour Government has previously pledged to honour the Triple Lock for the duration of this Parliament. Ms Kendall also confirmed that the next statutory UK Government review into when and how to raise the State Pension age will start work now. She explained: 'Unless we act, tomorrow's pensioners will be poorer than today's, because people who are saving aren't saving enough for their retirement.' Lowering the age and earnings threshold at which people are brought into auto-enrolment and as well as looking at easy-access 'sidecar' savings accounts will be among the options the commission looks into. The Department for Work and Pensions (DWP) said 45 per cent of working-age adults were putting nothing into their pensions. The previous pensions commission recommended automatically enrolling people in workplace pensions, which has seen the number of eligible employees saving rise from 55 per cent in 2012 to 88 per cent. DWP analysis suggested 15 million people were under-saving for retirement, with the self-employed, low-paid and some ethnic minorities particularly affected. Around three million self-employed people are said to be saving nothing for their retirement, while only a quarter of people on low pay in the private sector and the same proportion from Pakistani or Bangladeshi backgrounds are saving. Women face a significant gender pensions gap, with those approaching retirement in line to receive barely half the income that men can expect.
Daily Record
14-07-2025
- Business
- Daily Record
Retirement expert warns number of pensioners paying tax set to soar due to rising incomes
HMRC estimates nearly 9 million pensioners will pay tax for the current financial year. Income tax rises for Scots in April - how the changes affect you The latest HM Revenue and Customs (HMRC) data indicates that 8.7m pensioners are projected to pay income tax on their retirement income in 2025/26. It marks an increase of around 420,000 compared to the previous year (2024/25) and a rise of 1.85m from 10 years ago (2015/16). However, Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, warns more pensioners will be 'dragged into taxpaying territory' over the coming years due to frozen income thresholds. The Personal Allowance threshold will be frozen at £12,570 until April 2028, but the New State Pension is on track to exceed that income limit by April 2027. The full, New State Pension is worth £11,973 during the current financial year. Ms Morrissey explained: 'The pension tax paying population is surging. On the one hand, this can be celebrated as a sign of rising incomes among this population, but it's also fair to say that frozen tax thresholds have also played a huge part in dragging more pensioners into taxpaying territory. With the freeze set to stay in place until 2028, we expect to see these numbers continue to swell. 'There are things that can be done to help manage these tax liabilities. For a start, up to 25 per cent of your pension can be taken tax free and this can be used alongside taxable income to keep you below an income tax threshold. Retirement income is also more than just about pensions, with ISAs also able to play a key role.' It's important to be aware that the income from ISAs is tax free which means it can be used alongside your pension income to keep the tax bill down. Ms Morrissey also highlighted how pensions can also play an important role in helping working-age people manage their taxes. She explained: 'Paying into a pension reduces your adjusted income and this can reduce the amount of tax you have to pay or even stop you from breaching a threshold that moves you into paying tax at a higher rate. 'This can be especially helpful to those who earn between £100,000 and £125,140 per year who get hit by the stealthy 60 per cent tax trap that erodes your personal allowance.' Under the Triple Lock policy, the New and Basic State Pensions increase each year in-line with whichever is the highest between the average annual earnings growth from May to July, CPI in the year to September, or 2.5 per cent. It is aimed at preventing the value of the State Pensions being whittled away by cost of living pressures. The New and Basic State Pensions increased by 4.1 per cent in April, however, future forecasts from the Labour Government expect it to rise by 2.5 per cent over the next four financial years. Using these calculations, it puts the full New State Pension on track to be worth £12,578.80 in the 2027/28 financial year - £78.80 over the Personal Allowance. While the amount of State Pension to be taxed may seem relatively small - tax is only paid on the amount over the Personal Allowance - older people with other income streams could find themselves having to part with more cash to pay a tax bill - if it's not automatically deducted from private or workplace pensions through PAYE. Online guidance at on who might need to pay tax on their pension also includes a handy tool to calculate how much tax someone might need to pay, and the different ways this can be done. The latest State Pension Triple Lock predictions show the following projected annual increases: 2025/26 - 4.1%, the forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5% State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Future new State Pension forecasts Under a 2.5 per cent increase, the full New State Pension will be worth: 2026/27 - £236 per week, £12,227.30 a year 2027/28 - £241.90 per week, £12,578.80 a year 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 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.
