Easter Monday, 10th April, sees pensioners getting a big boost to their bank accounts with their State Pensions set to increase. It is on this day that the monthly State Pension will go up by 10.1 per cent in line with inflation. The increase comes after the triple lock was kept in place which stipulates that the annual rise is linked to either inflation, wage growth or 2.5%, whichever of the three is the highest.
For the 2.9 million pensioners receiving the new State Pension, there will be an increase from £185.15 per week to £203.85 per week. As pensions are usually paid out every four weeks, this will see a new amount of £815.40 a month going into accounts.
However, 12.6 million people currently draw a State Pension. Only 23 per cent are on the new State Pension. The remaining 9.7 million (77 per cent) get the old basic State Pension that was in place before April 2016. This pays out £141.85, going up to £156.20 from April 10. Paid every four weeks, it will see £624.80 go into accounts. That’s almost £200 less per month than the new pension.
Pensioner Mary Ashburn from St. Anne’s complained, ‘ As I was born in 1950 I receive the old pension – and will get nearly £200 a month less than my friend who was born just a year later. Surely this cannot be fair. She will get over £1000 a year more than me.’
The current age of retirement is 66 for men and women across Great Britain and is set to rise to 67 between 2026 and 2028. The UK Government recently announced that it will review the rise to 68 two years after the next general election, which is due to take place next year.