PENSION BOOST

Millions of grandparents to get pay rise in weeks – how much will you get?

How to check if you are entitled to a retirement income boost

MILLIONS of grandparents will get a pay rise within weeks, and some will get more than others.

It comes as benefit and state pension payments are set to rise by 6.7% next month, in line with the consumer price index (CPI) level of inflation for September 2023.

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We explain how much your income will rise by

It means that millions on a state pension will see their payments rise by up to £901 a year from April 8.

Plus, those claiming pension credit and attendance allowance also see their payments boosted in the same month.

Here we explain how much your income will rise by and how to check if you're missing out on any extra benefits.

STATE PENSION

The full rate of the new state pension will go up from £203.85 a week to £221.20.

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For the basic part of the old state pension, the rate will increase from £156.20 to £169.50.

There's also the additional state pension under the old system, which is an extra payment on top of the basic state pension some are entitled to.

Your state pension amount depends on your National Insurance record.

You’ll be able to claim the new state pension if you’re:

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  • A man born on or after April 6, 1951
  • A woman born on or after April 6, 1953

You’re eligible for the basic state pension if you were born before:

  • April 6, 1951, if you're a man
  • April 6, 1953, if you're a woman
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However, it's important to remember that the full state pension rate is only available to those with 35 years of National Insurance Contributions (NICs).

You might have gaps in your NICs if you were not earning enough, or were unemployed and not claiming benefits.

Luckily, those who have gaps can plug any in from up to 17 years ago - this means they will then qualify for the full state pension.

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You can check how many years of NI payments you've made and see any missing years by visiting //www.gov.uk/check-national-insurance-record.

PENSION CREDIT

Retirees on a low income can get it topped up via pension credit.

Pension Credit will go up from £201.05 a week to £218.15, or £306.85 to £332.95 for couples.

If your income is lower than this, you should be eligible for the benefit.

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You could get the "Savings Credit" part of the Pension Credit if both of the following apply:

  • You reached state pension age before April 6, 2016
  • You saved some money for retirement, for example, a personal or workplace pension

This part of Pension Credit will increase from £15.94 a week to £17.01 or for couples, from £17.84 to £19.04.

There are also top-up amounts, for instance, if you're caring for someone else or are disabled.

You can learn more about pension credit, including how to apply in our guide.

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ATTENDANCE ALLOWANCE

Attendance allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

It’s paid at two different  and how much you get depends on the level of care you need.

The higher rate will rise from £101.75 to £108.55 in April, while the lower rate will also go up from £68.10 to £72.65.

To get an attendance allowance you need to be:

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You cannot get an attendance allowance if you already get disability living allowance (DLA) or personal independence payments (PIP).

Are you missing out on benefits?

YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to

Charity works out what you could get.

Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.

MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.

You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.

Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.

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