State pension increase to start hitting bank accounts from Monday – see how much you'll get

MILLIONS of retirees are set to get a pay rise from Monday as state pension rates increase.

The state pension will go up by 3.1% on Monday, which will mean a £300 boost to your payments.

You get the benefit when you reach the state pension age – currently 66 for both men and women.

The amount you get depends on a number of things including your age, when you retired and your record of National Insurance contributions (NICs).

Payments will go up from £179.60 a week to £185.15 for those getting the maximum under the new system, .

Under the old system, the basic state pension will go up from £137.60 rising to £141.85.


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The exact amount you get under either system will depend on your entitlement, like how many years of National Insurance contributions you've made.

You may also get an amount based on a partner's entitlement.

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How ever much you get, you'll soon get more come Monday, as the state pension amount increases each year to keep up with the cost of living.

It comes as millions saw their energy bills double to an average of £1,971 a year when the price cap went up at the beginning of the month.

And inflation hit an eye watering 6.2%, a high not seen in decades, when the latest data from the Office for National Statistics was released last month.

Don't forget to check that you're getting all the benefits you're entitled to by using a free benefits checker, as this could boost your budget more.

There's extra help you can get with bills if you're struggling, and council tax too.

Here are the current rates for both and the new amounts next year.

How much is the state pension in 2022?

New state pension per week

  • Full rate: £179.60 rising to £185.15 in 2022

You usually need 35 years of NICs to get the maximum and at least 10 years to get anything at all.

If you don't have the full amount than the amount of state pension you get will be lower.

Old state pension per week

  • Category A or B basic pension: £137.60 rising to £141.85 in 2022
  • Category B (lower) basic pension – spouse or civil partner's insurance: £82.45 rising to £85.00 in 2022
  • Category C or D – non-contributory: £82.45 rising to £85.00 in 2022.

To get the full basic state pension you usually need 30 years of NICs. If you have less than this then the mount you get will be lower.

Old or new state pension: what's the difference?

There are two different systems and the way the state pension works changed from April 6, 2016.

Those who reached state pension age before this date, get the old state pension, known as the basic state pension.

Under this system you may also get extra, and it's split into four categories – A, B, C, and D. 

  • A – a contributory payment which includes the basic pension and an additional earnings element, dependent on the claimant’s NIC record. 
  • B – a contributory payment, dependent on NICs paid by a spouse or civil partner.
  • C – a non-contributory payment, with very few (if any still) being claimed. 
  • D – a non-contributory payment for some individuals over age 80, subject to certain conditions.

The pension paid after this date under the new system is known as the new state pension.

If you've accrued National Insurance contributions under both the old and new systems, you'll receive a state pension based on a mix of both.

What is the state pension triple lock?

The state pension rises each year so that retirees can keep up with the cost of living, which generally increases over time.

Usually the amount rises according to a formula known as the triple lock

It was introduced by the coalition government in 2010 and sees pension payments increase in line with whichever of the following is highest:

  • earnings – the average percentage growth in wages in Great Britain
  • prices – the rising cost of living in the UK, as measured by the Consumer Prices Index (CPI)
  • 2.5%

But the triple lock has been scrapped for one year due to the impact of the Covid pandemic.

Instead the triple lock will be replaced with a double lock promise – for just one year.

That means the state pension will rise by the rate of inflation, which was 3.1% and higher than 2.5%.

Wages have soared by around 8% since lockdown ended, which would have forced the Chancellor to find billions of pounds extra to fund pensions.

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Many other benefits will rise by 3.1% next year too – check out the full list.

Meanwhile pensioners on low income could get extra help from Pension Credit – here's how.

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