New state pension to increase by £900 next year - but are you among 500,000 pensioners who will miss out?
The state pension will increase by 8.5 per cent in line with the triple lock from April 2024
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The state pension will increase by 8.5 per cent, in line with the earnings element of the triple lock, from April 2024, although hundreds of thousands of people will miss out.
It means those who get the full new state pension will see around £900 more over the financial year, but pensioners who live in certain "frozen" countries will not get any increase at all.
The state pension only increases in certain countries, affecting half a million pensioners, according to estimates by the campaign group End Frozen Pensions.
If they return to the UK, the state pension will go up to the current rate for that time.
WATCH NOW: Pensioners tell GB News about the impact of a frozen pension
Where does UK state pension increase?
The state pension only rises each year if the recipient lives in:
- The European Economic Area (EEA)
- Gibraltar
- Switzerland
- Countries that have a social security agreement with the UK (but people cannot get increases in Canada or New Zealand).
If a person lives outside of these countries, they won't get the increases each year.
Second World War veteran Anne Puckridge, 98, is among those affected by the "frozen pensions" policy.
She worked in the UK up until the age of 76, paying her National Insurance in full.
As she moved from the UK to be closer to her daughter and grandchildren who live in Canada, Ms Puckridge's state pension has been frozen at £72.50 per week. It would be £156.20 per week if she lived in the UK.
It means her income falls in real value year-on-year as inflation bites.
A Government spokesperson said: "Our priority is ensuring every pensioner receives 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.
“The Government’s policy on the uprating of the UK State Pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”
LATEST DEVELOPMENTS:
The DWP is responsible for paying the state pension to recipients
PA
How much will the state pension be from April 2024?
The amount of state pension a person gets depends on whether they qualify for the basic or the new state pension, as well as how many qualifying years they have on their National Insurance record.
The full new state pension, currently £203.85, will increase to £221.20 a week from April 2024.
This works out at an extra £17.35 per week, or £902.20 over a year.
The full basic state pension is currently £156.20 a week, rising to £169.50 next year.
It marks at increase of £13.30 per week, equating to £691.60 per year.
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