The State pension will rise nearly 4% from April 2020
STATE PENSION payments are going to increase next week by up to £6.60, its highest rate increase since April 2012.
The state pension rises each year, with the increases taking place utilising the governments triple lock mechanism.
This means that both the basic and new state pension increases by whichever is the highest out of:
Average percentage growth in wages in Great Britain
Percentage in prices in the UK as measured by the Consumer Prices Index (CPI)
This year, the increase is tied to earnings growth, with a 3.9% rise to the new state pension and basic state pension.
The new rates will come into effect from Monday, on April 6, 2020.
The increase in pensions is more than double that of Child Benefit and Universal Credit which are rising by the cost of inflation at 1.7%.
This means that if you reached state pension age after April 6, 2016, and are entitled to the full new state pension, will see their weekly payments rise next week of £6.60 from £168.60 to £175.20.
Anyone who reached state pension age before April 6, 2016, and are receiving the full basic state pension, will see a rise of £5.05 from £129.20 to £134.25.
However, some people will not see their state pension be rise under this mechanism. This is because the state pension will only increase each year if you live in:
The European Economic Area (EEA)
Countries that have a social security agreement with the UK
Should anyone living outside of these countries, they cannot get yearly increases to the UK state pension.However, if they return to live in the UK, their pension would go up to the current rate.
The state pension is usually paid every four weeks into your designated bank account. It is paid in arrears, so the payment covers the last four weeks, rather than the upcoming four weeks.