Millions of people who claim State Pension will see their payment dates change over Christmas and New Year.
The Department for Work and Pensions (DWP) pay benefit claimants and pensioners on a regular basis, with money usually landing in accounts on specific days. But the DWP does not issue payments on bank holidays, and there are a few of these falling over the festive period.
When this happens, payments usually land the first working day before the bank holiday.
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It can be useful to know when your payments will arrive so you can budget for costs over the Christmas period. Here's everything you need to know as some payment dates are set to move, Birmingham Live reports.
The State Pension is usually paid every four weeks in arrears. The amounts due will go up from April 2024 after the Chancellor announced a rise of 8.5%, based on the figure for pay growth earlier in the year. Other DWP and HMRC benefits will rise by a lower amount of 6.7%.
More than 12.6 million people are on the State Pension, with 3.2 million on the New State Pension that was introduced in April 2016 and the rest on the old Basic State Pension that was in place before that date. Those on a low retirement income may be able to get a boost from Pension Credit, with 1.4 million people claiming this top-up and the DWP campaigning to increase take-up of the benefit.
How the State Pension is paid
The day your pension is paid depends on your National Insurance number. The last two digits determine when the cash goes into your account:
Last two digits of NI number and payment day:
- 00 to 19 – Monday
- 20 to 39 – Tuesday
- 40 to 59 – Wednesday
- 60 to 79 – Thursday
- 80 to 99 – Friday
State Pension payments are never arranged to go in at a weekend although some banks may credit accounts on a Saturday or Sunday.
However, there will be several date changes over the Christmas and New Year holidays. How they affect you will depend on which day your pension normally goes in, as listed above.
State Pension Christmas and New Year payment changes
These changes will also apply to the top-up benefit Pension Credit and to other DWP benefits.
- Expected payment date Monday, December 25 (Christmas Day bank holiday) – Will be paid earlier on Friday, December 22
- Expected payment date Tuesday, December 26 (Boxing Day bank holiday) – Will be paid earlier on Friday, December 22
- Expected payment date Wednesday, December 27 – Will be paid earlier on Friday, December 22
- Expected payment date Thursday, December 28 – no change, paid as normal
- Expected payment date Friday, December 29 – no change, paid as normal
- Expected payment date Monday, January 1 (New Year's Day bank holiday) – Will be paid earlier on Friday, December 29
- Expected payment date Tuesday, January 2 – Will be paid either on Friday, December 29 or Tuesday December 2
State Pension and Pension Credit increases from April 2024
New State Pension
- Full rate: £221.20 (from £203.85)
Basic State Pension
- Category A or B Basic State Pension: £169.50 (from £156.20)
- Category B (lower) Basic State Pension – spouse or civil partner's insurance: £101.55 (from £93.60)
- Category C or D – non-contributory: £101.55 (from £93.60)
Pension Credit
Standard minimum guarantee
- Single: £218.15 (from £201.05)
- Couple: £332.95 (from £306.85)
Additional amount for severe disability
- Single: £81.50 (from £76.40)
- Couple (one qualifies): £81.50 (from £76.40)
- Couple (both qualify): £163.00 (from £152.80)
Additional amount for carers
- £45.60 (from £42.75)
Savings Credit
- threshold for single: £189.80 (from £174.49)
- threshold for couple: £301.22 (from £277.12)
- maximum for single: £17.01 (from £15.94)
- maximum for couple: £19.04 (from £17.84)
Additional amount for children
- First child born before April 6, 2017: £76.79 (from £72.31)
- Subsequent children: £66.29 (from £61.88)
Additional amount for a disabled child
- Lower rate: £35.93 (from £33.67)
- Higher rate: £112.21 (from £104.86)
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