State pension is rising next week but thousands could see pensions cut by up to £70 a week
STATE PENSION recipients are set to see their rates rise next week, as the new tax year rolls around in April 2020. Why will some people see a part of their retirement income be cut by £70 a week?
Under the triple lock, the state pension rises by whichever is the highest out of 2.5 percent, the average rise in earnings, or inflation.
This year, the increase is tied to wage growth.
This means that the full basic state pension amount will rise by £5.05 per week from £129.20 to £134.25.
Meanwhile, the weekly full rate of the new state pension is to increase by £6.60 per week from £168.60 to £175.20 per week.
State pension amount is rising next week, on April 6, 2020
That said, the Department for Work and Pensions (DWP) explains that under transitional arrangements for the state pension, not everyone will get this amount.
The new State Pension takes National Insurance records into account, and furthermore, some people will receive more and others less than this amount.
Another change related to some people’s state pension is set to come into effect on April 6, 2020.
A Freedom of Informaion (FOI) response has shown that 11,000 people are set to face a large cut in their state pension next month, with this total amount being an estimated £33million.
It’ll mean individuals affected will lose up to £70 per week.
The change involves the final abolition of state pension additions for “adult dependents” -typically spouses under state pension age who are financially dependent on the pension recipient.
Under the 2007 Pensions Act, these additions were abolished for new claims from 2010 onwards, however anyone who was already in receipt by April 2010 was allowed to continue receiving the addition for as long as they were entitled.
However, this transitional arrangement is now coming to an end in April 2020.
State pension: The amount rises annually each year under the triple lock
A spokesperson for the Department for Work and Pensions (DWP) said: ““The ending of ADIs was part of a package of reforms introduced in 2010, which meant that overall more women received the full basic state pension and more generous National Insurance credits for carers were introduced.
“After April 6, 2020, current ADI recipients may be eligible for a means tested benefit such as Universal Credit or Pension Credit.
“Those already in receipt of a means tested benefit should see no change to their income as the loss of the ADI will be offset by an increase in their means tested benefit.”
It’s possible to check how much a person is able to get by going online, and using the government’s “Check you State Pension” tool.
This service enables a person to check the amount they can get – which is also known as their state pension forecast.
It also tells the user when they can get the state pension, as well as how they may be able to increase it, if they can.
The state pension can be claimed once a person reaches state pension age – which is currently rising
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