State Pension is currently offered by the Department for Work and Pensions (DWP), much like the Universal Credit benefit. The State Pension sum provides those who have reached an eligible age with a sum of money every four weeks to support the cost of living. At present, the State Pension is split into two tiers, dependent on the age which a person retires.
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Those who reached State Pension age on or after April 6, 2016 will be entitled to the new State Pension, and could receive up to £175.20 per week.
However, those who retired before this date will receive the basic, or ‘old’, State Pension.
These pensioners can receive up to £134.25 per week.
State Pension is available for those who either have 30 or 10 qualifying years of National Insurance contributions, depending on when they retire.
A particular group will be transitioning from Universal Credit onto a State Pension sum.
It is therefore important to understand how this change will be managed, and what it entails.
Fortunately, the government has provided more information for this group to pay attention to.
The Parliamentary Under-Secretary for the Department for Work and Pensions, Will Quince, answered questions in the House of Commons yesterday.
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And he touched upon the thousands of people who will be moving from claiming Universal Credit to receiving State Pension.
He said: “The government announced in March that anyone reaching State Pension while claiming Universal Credit will be eligible for a run on until the end of the assessment period in which they reach State Pension age.
“An estimated 200,000 people will benefit from this measure over the next five years, receiving on average an additional £350 each.
“I am pleased to confirm that regulations are being laid today to put this measure on a statutory footing.”
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The measure will be welcomed by many pensioners who relish the extra income.
Previously, people who moved between the benefits could be forced to wait several weeks, leaving them low on cash.
But the move ensures this group is not left in limbo until then.
The government states there is a certain wait period before a person can claim their State Pension.
The first payment should be in a pensioner’s bank account or building society within five weeks of reaching State Pension age.
After this, pensioners will receive a full payment every four weeks.
However, those receiving the sum should also keep an eye out.
This is because they may get part of a payment before their first full payment.
Pensioners should look out for a letter which will tell them what to expect.
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