The Department for Work and Pensions (DWP) will increase state pension payments to £1,480 for certain pensioners in July. This notable rise is due to the payment schedule aligning with the calendar month, resulting in some pensioners receiving two payments within the same month.
Because Wednesday, July 1 falls on the first day of the month, and the DWP pays state pensions every four weeks, pensioners with a Wednesday payment date will receive one payment on July 1 and another four weeks later on July 28. This results in a double payment in July.
For state pensioners on the basic, older state pension rate, this equates to £1,480, based on the current weekly rate of £184.90. This basic rate applies to men born before 1951 and women born before 1953.
Typically, the basic State Pension is paid every four weeks directly into the pensioner’s chosen bank account. If you wish to change your payment account, contact the Pension Service.
Your pension payment day depends on the last two digits of your National Insurance number. Also, if your payment day falls on a bank holiday, your payment might be made earlier than usual.
It’s important to remember that reaching state pension age does not require you to start claiming immediately. If you have sufficient income from other sources, you may choose to delay or defer your pension claim.
Deferring your pension can increase your payments. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, explains, “If you are on the new state pension, for every nine weeks you defer, you get an additional 1% pension increase. Deferring for a year can boost your pension by about 5.8%.”
In summary, July presents an opportunity for eligible state pensioners to receive a double payment, increasing their income for that month due to the timing of payment dates.