State pension: DWP introduce bill ensuring payments rise next year – triple lock altered

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State pension payments have been provided with additional support, according to the latest information from the DWP. Thérèse Coffey the Secretary of State at the Department for Work and Pensions, has very recently introduced a technical Bill in the House of Commons that will give the Government the ability to increase the State Pension next year.

This bill has been introduced as under current legislation, the state pension can only be increased if there has been a rise in average earnings for the same period in the previous year.

Due to the challenging economic circumstances, average earnings are expected to show no growth in that period according to the government.

As such, the new bill makes technical changes to the legislation which allow ministers to deliver on their commitment to the pension’s triple lock next year, even if there is no growth in earnings in the relevant period, ensuring that state pensions can still be up-rated.

In commenting on the bill, Thérèse Coffey had the following to say: “The Government has worked hard to protect all age groups during the pandemic, strengthening the welfare safety net, introducing furlough and income protection schemes, as well as supporting those who have lost their jobs back into work.

“It is only right, then, that we also ensure pensioners can see their incomes protected as we build back better.

“In these difficult times, I want to give pensioners peace of mind about their financial health.”

This news is set to be important for many people in the coming days as many more retirees than usual will reach their state pension age.

From October 6, anyone born between October 6, 1954, and April 5, 1960, will reach their state pension age on their 66th birthday.

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Under current plans, the state pension age will increase to 67 by 2028.

It will then rise to 68 by 2046.

It should be noted state pension payments will not be paid out automatically even when a person reaches their state pension age.

State pensions will need to be claimed and there are a number of ways to do this.

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The government details the quickest way to do this is by heading online but state pensions can also be claimed over the phone or by post.

State pensions can be claimed up to four months before reaching a state pension age and they can be backdated under certain circumstances.

To be eligible for a state pension in the first place, a person will usually need at least 10 years of National Insurance contributions.

The full amount will be paid out if a person has collated at least 35 years of contributions.

The full payment will be £175.20 per week, which equates to just over £9,000 a year.

A person may be able to increase this amount further if they:

  • Have over a certain amount of “additional” state pension
  • Defer taking their payments for at least nine weeks

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