State pensioners born before 1953, if they are women, or before 1951, if they are men, are set to receive an extra £440 per year from May. This follows a £440 pay rate hike for basic state pensioners that will take effect in May for retirees.
Enhanced DWP Rates
Under the enhanced Department for Work and Pensions (DWP) rates, the basic state pension is rising, providing additional cash to eligible pensioners. The DWP will now pay out £184.90 per week, an increase of £8.45 per week, or £36.61 per month on average. This works out to £440 per year.
Uprating and Payment Schedule
The State Pension rises every year on 6 April, the start of the new tax year, when the legal "uprating" takes effect. However, your pension is paid on a set day of the week, determined by the last two digits of your National Insurance number. Payments are made in arrears, meaning you are paid for the week that has just finished, not the week ahead.
The DWP sets your payment day according to the final two digits of your National Insurance number:
- 00–19: Monday
- 20–39: Tuesday
- 40–59: Wednesday
- 60–79: Thursday
- 80–99: Friday
Rest Less explains: "State Pension payments are made weekly in arrears. This means you’re paid for the week that has just ended. So, if your usual payday falls after 6 April, your first payment including the higher rate will arrive on your next scheduled payment day, which won’t necessarily be on 6 April itself."
For example, if your pension is normally paid on a Friday and 6 April falls on a Saturday, your first higher payment would arrive the following Friday. That first payment may include a mixture of days paid at the old rate and days paid at the new rate. After that, all payments will reflect the full increase. But remember, you won’t lose out, as although the increase officially takes effect on 6 April, the timing of your bank payment simply reflects the weekly payment cycle.
