The Department for Work and Pensions (DWP) has released the latest figures showing that there are now 12.9 million people claiming the State Pension, including over 1.1m residing in Scotland. Of these, 4.1m are on the New State Pension (post-April 2016), while 8.8m are receiving the Basic (or Old) State Pension (pre-April 2016).
The New and Basic State Pensions are set to increase by 4.1 per cent in April under the earnings growth measure of the Triple Lock. However, additional elements, along with working age and disability benefits, will rise by 1.7 per cent under the September Consumer Price Index (CPI) inflation rate.
Every pensioner will receive a letter from the DWP before the payments increase on April 7, typically arriving in March. It’s crucial for recipients to read this letter to ensure the amount they will receive is correct.
An important leaflet included with the letter could potentially boost annual income by an average of £4,200. Each year, the DWP includes information about claiming Pension Credit along with the uprating to ensure every pensioner directly receives guidance on the means-tested benefit, urging them to check their entitlement.
It’s vital for all older individuals – whether single, married or cohabiting – to ensure they are claiming all the additional financial support they are entitled to in 2025 to help enhance their income and counteract the ongoing cost of living crisis, reports the Daily Record.
The annual Winter Fuel Payment eligibility rules have been altered, meaning only pensioners receiving certain benefits, such as Pension Credit, will receive the 2024/25 payment. However, older individuals who successfully claim before September this year will be eligible for the 2025/26 payment and a higher rate of the devolved Pension Age Winter Heating Payment (Scotland-only).
Pension Credit is the most under-claimed benefit, designed to provide additional financial support for older people on a low income – both singles and couples. Nearly 1.4 million older people across Great Britain are currently receiving this means-tested benefit.
Some older people believe that having savings or owning their home makes them ineligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax. An award of just £1 per week is enough to unlock other support.