DWP pension changes from April - including £900 payment boost and tax shake-up
22.03.2024 - 12:25
/ manchestereveningnews.co.uk
Pensioners across the country will see a significant change to their income next month.
The Department of Work and Pensions (DWP) confirmed that benefits and other sources of income that many pensioners rely on will see an increase. However, there will also be a major change to one component of pensions that could leave some better off and some worse off.
To see how your income could change in April, read our full breakdown below...
Read more: Waspi calculator shows if you may be entitled to compensation over pension changes
From April 8, the state pension will increase by 8.5 per cent, in line with the triple lock pledge. The type of state pension you claim depends on when you were born.
The new state pension can be claimed by people who have reached state pension age and were born on or after April 6, 1951 if they are men, or on or after April 6, 1953 if they are women. At present, the full new state pension is £203.85 per week, however, it will go up to £221.20 - a rise of £17.35 a week, or just over £900 a year.
On the other hand, the full basic state pension, which is currently £156.20 per week, will rise to £169.50 - a rise of £13.30 a week or £691 a year. This can be claimed by those born before April 6, 1951 if they are men, or before April 6, 1953 if they are women.
The pension Lifetime Allowance will be abolished from April 2024. This is the total amount you can save in all your pensions without having to pay extra tax.
At the moment, it's set at £1,073,100 for most people, but the Chancellor previously confirmed that this limit will be completely removed this year. Instead, there will be a blanket cap of £268,275 on the tax-free lump sum that can be taken out of a pension.
Those over the state pension age