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State Pension Uprating for April 2021

A research briefing at the end of 2020 provided information on the uprating of the State Pension, for people who reached State Pension Age (SPA) before 6 April 2016.

The Government has already confirmed its continued commitment to the ‘Triple Lock’ and therefore both the basic State Pension and new State Pension will be uprated accordingly using the highest benchmark of 2.5 per cent.

Basic State Pension
In April 2021, the full amount of basic State Pension will rise by 2.5 per cent from £134.25 to £137.60 pw.

Additional State Pension
The statutory requirement is to uprate at least in line with prices. For April 2021, the increase will be 0.5 per cent.

New State Pension
In April 2021, the full amount of new State Pension will rise by 2.5 per cent from £175.20 to £179.60 pw.

Pension Credit
Pension Credit has two elements:
1) Guarantee Credit – provides a minimum level of income.
2) Savings Credit – aims to provide an additional amount to people aged 65 and over who have made some provision for their retirement.

In April 2021, the Standard Minimum Guarantee (SMG) in the Guarantee Credit will be increased by the cash rise in the basic State Pension (£3.35), passing on the benefits of the ‘triple lock’ uprating to those pensioners on the lowest incomes. The full rate of SMG will increase from £173.75 to £177.10 pw.

Please follow the links below for more details:

Benefits and Pensions Rates for 2021/22 (www.gov.uk)

Briefing Paper: State Pension Uprating - House of Commons Library (parliament.uk)