State pension payments may rise to more than £200 per week – but 520,000 set to miss out | Personal Finance | Finance
State pension payments underwent a temporary change this year, as the triple lock was scrapped due to warped earnings data. A double lock was implemented instead, with a 3.1 percent increase secured in the 2022/23 tax year, but a bumper increase is expected on the triple lock’s return next year.
Inflation is creeping up and forecasted to hit 13 percent by the end of the year.
It is increasingly likely the inflation figure recorded in September 2022 will be used to calculate pension increases – and this is likely to be in double digits.
However, some will miss out on this substantial rise due to a historic rule which affects those who are living in certain places.
State pension increases are only guaranteed for individuals living in:
- The UK
- European Economic Area (EEA)
- Gibraltar
- Switzerland
- Countries with a social security agreement with the UK – but not Canada or New Zealand.
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The campaign stated on Twitter: “Having made National Insurance contributions throughout their working lives, these pensioners now face poverty and hardship.
“The UK has historic social security agreements with a range of countries covering annual pension increases. This results in an arbitrary postcode lottery.
“Because they moved abroad, often to be with family, these pensioners have now missed out on thousands of pounds of pension payments.”
The Government, however, insists the matter of state pensions being frozen in certain places overseas is a longstanding one of “more than 70 years”.
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A DWP spokesperson previously told Express.co.uk: “This year we will spend over £110billion on the state pension and our priority is ensuring every pensioner receives all the financial support to which they are entitled.
“We understand that people move abroad for many reasons and we provide clear information about how this can impact on their finances.
“We continue to uprate state pensions overseas where there is a legal requirement to do so.”
When it comes to state pension increases, the inflation news could be good for those who actually do benefit from the increase.
The full new state pension is currently worth £185.15 weekly, so if inflation is recorded at 10 percent in September – which seems likely – would mean an additional £18.15.
This would increase the current rate to approximately £203.70 per week for those receiving the full amount.
The full basic state pension is currently £141.85 weekly, and a 10 percent increase would mean it would rise to £156.05 per week.
Typically, 35 qualifying years of National Insurance contributions are needed to unlock the full new state pension, with 30 years for the full basic state pension.
Some may get less than the full new state pension if they were contracted out before April 6, 2016.
