State pensioners born in these years to be handed free £2,522

State pensioners born in these years to be handed free £2,522

The Department for Work and Pensions (DWP) has two types of State Pension - both the New and Basic - with the latter paying £11,502 a year and the former £8,814 a year in total.

by · Birmingham Live

State pensioners born in these years could be handed a boost over £2k each. The Department for Work and Pensions (DWP) has two types of State Pension - both the New and Basic - with the latter paying £11,502 a year and the former £8,814 a year in total.

Thankfully, people who claim Pension Credit can get top ups worth £218 a week, meaning £11,336 annually, which works out as a top up of £2,522 per year, if you're on the older basic state pension.

The maximum 'new' State Pension is £221.20 a week, though you may get more or less than this depending on your individual circumstances. This comes under the flat-rate 'new' State Pension system, which began on 6 April 2016.

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Under the old scheme, the maximum 'basic' State Pension is £169.50 a week, though you may get more or less than this depending on your individual circumstances. Pension Credit is a benefit aimed at people over state pension age, offering a top-up to their income.

It's made up of two parts. While some people get both, many qualify for just one of the two. Either way, you could be due extra cash. Guarantee credit is the main part of Pension Credit, giving you a top-up of your weekly income to a minimum guaranteed level.

For 2024/25, this is £218.15 a week if you're single, and £332.95 a week if you're in a couple. Savings credit is for those who reached state pension age before April 2016, and there's an extra boost available if you've made provision for your retirement via savings, work or a private pension.

This gives you up to £17.01 a week if you're single, and £19.04 if you're in a couple. To qualify, you've got to earn above a threshold amount of £189.80 if you're single and £301.22 if you're in a couple.