Incomes will increase for UK’S pensioners
RISE COMES INTO EFFECT IN APRIL
OLDER people in receipt of a state pension will see their incomes rise in the coming tax year.
It follows confirmation from the Department for Work and Pensions (DWP) that payments will increase by 3.1 per cent for men and women.
The increase, which is calculated to be in line with the Consumer Price Index (CPI) indicator for inflation, will come into effect on April 11.
In real terms, it means that someone on the basic state pension will see their weekly income increase from £137.60 to £141.85.
That adds up to £567.40 each month, with the full state pension rising from £179.60 to £185.15 – for a monthly £740.60.
The increase was confirmed in November after the Social Security Act 2021 was given Royal Assent.
Under the changes, the so-called Triple Lock on pensions – a guarantee that the UK state pension would not lose value in real terms – is suspended for a year because of distortions in earning stats resulting from economic measures to ease the impact of the Covid-19 pandemic.
It is replaced by a temporary “double lock” rule, meaning the state pension for the 2022/23 financial year is based on either annual inflation or 2.5 per cent, whichever is greater.
A spokesperson for the DWP said: “In taking this decision, the government carefully considered the fairest approach for both pensioners and younger taxpayers, many of whom been hardest hit by the financial impacts of the pandemic.
“In addition, last year, we delivered primary legislation to increase state pensions by 2.5 per cent, when earnings fell and price inflation increased by half a percentage point.
“If we hadn’t taken this action, state pensions would have been frozen.”
It has also reiterated that the double lock change is a one-off response to exceptional circumstances and the Triple Lock will be back next year.
The DWP said that all other benefits will also increase by 3.1 per cent, in line with the CPI, in the coming financial year.
This includes: Working-age benefits; Carers’ benefits; Pensioner premiums in income-related benefits; Statutory Payments; Additional State Pension; Benefits to help with addihave tional needs arising from disability.
We have put together a summary of some of the new payment rates for the state pension and benefits for the 2022/23. They include the increased amount and are shown as weekly rates, unless otherwise stated.
Attendance Allowance
Higher rate: £92.40 (from £89.60) Lower rate: £61.85 (from £60)
Carer’s Allowance
April 2022 rate: £69.70 (from £67.60)
Employment and Support Allowance (ESA)
Under 25: £61.05 (from £59.20) 25 or over: £77 (from £74.70)
Housing Benefit
Under 25: £61.05 (from £59.20)
25 or over: £77 (from £74.70) Entitled to main phase ESA: £77 (from £74.70)
Incapacity Benefit (long-term)
April 2022 £114.70)
rate:
Income Support
£118.25 (from
Under 25: £61.05 (from £59.20) 25 or over: £77 from (£74.70)
Jobseeker’s Allowance (contributions based)
Under 25: £61.05 (from £59.20) 25 or over: £77 (from £74.70)
Jobseeker’s Allowance (incomebased)
Under 25: £61.05 (from £59.20) 25 or over: £77 (from £74.70)
Pension Credit
Single: £182.60 (from £177.10) Couple: £278.70 (from £270.30)
Personal Independence Payment
Daily Living Component: Enhanced: £92.40 (from £89.60) Standard: £61.85 (from £60.00) Mobility Component: Enhanced: £64.50 (from £62.55) Standard: £24.45 (from £23.70)
State Pension
Full New Pension: £185.15 (from £179.60)
Basic Old State Pension (Category A or B): £141.85 (from £137.60) Widow’s Pension
Standard rate:
£122.55)
Statutory Sick Pay
£126.35 (from
Standard rate: £99.35 (from £96.35)
Universal Credit (Monthly rates)
Single under 25: £265.31 (from £257.33)
25 or over: £334.91 (from £324.84) Joint claimants both under 25: £416.45 (from £403.93)
Joint claimants, one or both 25 or over: £525.72 (from £509.91).