The state pension is set to rise tomorrow as the ‘offensive’ increase hits vulnerable households

State pension is a weekly payment from the state that you receive when you reach state pension age. How much you could get increases by 3.1%, according to experts, which is not enough to overcome the cost of living crisis

The statutory pension increases by 3.1%
The statutory pension increases by 3.1%

The state pension will rise 3.1% from tomorrow – but experts say the increase is not enough to help vulnerable households amid the cost-of-living crisis.

Inflation has just jumped to 6.2% and energy bills have risen by an unprecedented amount.

Energy regulator Ofgem has raised its price cap – which caps how much you can be charged for each unit of electricity and gas used – by a staggering £693 for someone on typical consumption.

Council tax bills just went up, too, and you may have noticed a spike in your broadband, cellphone, and mortgage payments.

Spiegel readers previously said they were “offended” by the pension increase and feared they might not have enough money to live on. This fear is confirmed by experts.

Helen Morrissey, Senior Pensions and Retirement Analyst at Hargreaves Lansdown, said: “This week’s 3.1% increase in state pensions offers little protection against rising inflation.

“Many pensioners have little or no funds to meet their skyrocketing food and energy bills – it’s a truly horrific situation.

“If inflation stays high all year they might stand for a decent rise next year, but that’s no consolation for those struggling today.

“Anyone over the statutory retirement age on a low income should see if they are eligible for pension credit.”

By how much does the statutory pension increase?

State pension is a weekly payment from the state that you receive when you reach state pension age.

There are two different types of state pension – the basic state pension and the new state pension – both of which will increase from April 11.

You are entitled to the basic state pension if you were born before:

  • April 6, 1951 if you are a man
  • April 6, 1953 if you are a woman

If you were born on or after these dates, you must apply for the new statutory pension.

The current statutory retirement age is 66 for both men and women, but is projected to rise to 67 by 2028.

This is how high the statutory pension will rise on April 11:

How much state pension you are entitled to depends on how many Social Security contributions you have accumulated in your working life.

The above figures are the maximum amounts.

You typically need at least ten qualifying years on your Social Security to receive a state pension.

You need 35 qualifying years for the full new statutory pension and 30 years for the old statutory pension.

If you take advantage of the pension credit, this will also increase by the following amounts from April 11:

The annuity loan tops up your money to the above weekly amounts if you’re over legal retirement age and on a low income.

You can also get additional amounts if you have other responsibilities and expenses.

Pension Credit also means you get access to other benefits like Free TV licenses if you’re over 75 and Cold Weather Payments.

You can also get help with NHS costs such as prescriptions, dental work, glasses and transport to hospital appointments.

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Fry Electronics Team

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