State pension increase: How much is the state pension per week?
State pensions will be increasing in April 2020 in line with the Government’s triple lock scheme. This means millions of pensioners will soon receive a boost in their pension payments.
April’s state pensions increase will be the biggest since 2012 – a 3.9 percent boost.
The triple lock system ensures each year state pensions go up, with three benchmarks to judge the amount by.
The amount is whichever is greater out of 2.5 percent each year, the rate of inflation or the average earnings growth.
The Consumer Prices Index (CPI) inflation measure for September 2019 was 1.7 percent, but the average earnings increased by 3.9 percent in the three months leading up to July, meaning this figure is the one used.
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How much is the state pension per week?
How much state pension you receive is based on the type of pension you get.
For those on the old state pension – people who reached state pension age by April 6, 2016 – the full basic State Pension will increase by £5.05 a week to £134.25.
If you are on the new state pension – having reached state pension age after April 6, 2016 – the full rate of new State pension will increase by £6.60 a week to £175.20.
State pensions are typically paid every four weeks into your bank account.
Most people top up their state pension with earnings, a workplace pension or other pension.
Your payment date is linked to your National Insurance number, and you will receive your first payment on the first allocated payday which follows your state pension age.
In order to receive the full rate of the basic State Pension you must have a total of 30 qualifying years of National Insurance contributions or credits.
To be entitled to the full rate of the new State Pension, you will need to have made qualifying National Insurance contributions for 35 years if you are a younger person with no National Insurance record before April 6, 2016.
However, as most people had a National insurance from before then, so the new state pension will be worked out under transitional arrangements.
There is no fixed amount and it could be below or above the full rate, depending on individual circumstances.
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This means you either were
- working and paying National Insurance
- getting National Insurance Credits, for example for unemployment, sickness or as a parent or carer
- paying voluntary National Insurance contributions
National Insurance contributions are made so you can qualify for certain benefits and the state pension.
You will pay National Insurance if you’re 16 and over and either
- an employee earning above £166 a week
- self-employed and making a profit of £6,365 or more a year
Before you begin to pay National Insurance contributions you need a National Insurance number.
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You can check your NI record via the Government’s website here https://www.gov.uk/check-national-insurance-record which breaks down several pieces of information linked to your NI number.
- what you’ve paid, up to the start of the current tax year (6 April 2019)
- any National Insurance credits you’ve received
- if gaps in contributions or credits mean some years do not count towards your State Pension (they are not ‘qualifying years’)
- if you can pay voluntary contributions to fill any gaps and how much this will cost
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