Millions warned their state pension won't rise by as much as they think in April

04 March 2024 , 09:50

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The state pension is rising next month (Image: Getty Images/iStockphoto)

Millions of older Brits have been warned their state pension may not rise by as much as they think next month.

The main headline state pension rate is rising by 8.5% in line with the triple lock - but additional elements that you may be entitled to will rise by a smaller amount of 6.7%. The triple lock was introduced in 2010 and makes sure the state pension rises every April by whichever is highest out of: inflation (using the previous September rate of Consumer Prices Index inflation), wages (average growth between May and July), or 2.5%.

The highest of these for this year is average wages, which was confirmed to be 8.5%. But the additional elements are rising in line with just September CPI inflation, which was 6.7%. Speaking in a debate this week, Lord Davies of Brixton, said many people may not be aware that not all elements of the state pension will rise by 8.5%.

He explained: “The ‘everything else’ is not trivial: it is all the additional pensions that people earned while they were in the state second pension, the retained rights that they received when the new state pension was introduced and the additional pensions that people gained because they deferred their state pension.”

New state pension payment rates 2024/25

These payments will rise by 8.5%:

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• Full payment rate: £221.20 (from £203.85)

Old/basic state pension payment rates 2024/25

These payments will rise by 8.5%:

• Category A or B Basic State Pension (full rate): £169.50 (from £156.20)

• Category B (lower) Basic State Pension - spouse or civil partner's insurance: £101.55 (from £93.60)

• Category C or D - non-contributory: £101.55 (from £93.60)

Additional pension payments

Increments to the following will rise by 6.7%:

• Maximum additional pension (own plus inherited): £218.39 (from £204.68)

Increments to the following will rise by 6.7%:

• Basic pension

• Additional pension

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• Graduated Retirement Benefit (GRB)

• Inheritable lump sum

Addition at age 80: £0.25 (no change)

Increase of Long-term incapacity for age

• Higher rate: £28.40 (from £26.60)

• Lower rate: £14.20 (from £13.30)

Invalidity Allowance (Transitional) for State Pension recipients

• Higher rate: £28.40 (from £26.60)

• Middle rate: £18.20 (from £17.10)

• Lower rate: £9.10 (from £8.55)

Levi Winchester