State pension rates for 2022 and how your payments will be affected

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The Department for Work and Pensions (DWP) has confirmed that State Pensions and benefits will be increased from next year. In 2022, state pension payments will be increased by 3.1 percent. Here’s how the rise will affect your payments.

The Secretary of State for Work and Pension’s, Thérèse Coffey, first announced the rise on November 25 as part of the DWP’s annual review.

Ms Coffey confirmed that the DWP will increase state pension payments in line with the “Consumer Price Index” (the inflation figure) for the previous year (the year to September 2021).

This means for those on the basic State Pension payments will increase to £141.85 per week and the full rate of the new State Pension will increase to £185.15.

This equates to a rise for those on a full new state pension of £5.55 a week.

Commenting on the rise, the DWP said: “In taking this decision, the Government carefully considered the fairest approach for both pensioners and younger taxpayers, many of whom have been hardest hit by the financial impacts of the pandemic.”

They added: “In addition, last year, we delivered primary legislation to increase State Pensions by 2.5 percent, when earnings fell and price inflation increased by half a percentage point.

“If we hadn’t taken this action, State Pensions would have been frozen.”

How long will this 3.1 percent increase last?

Unfortunately, this welcome 3.1 percent increase in payments won’t last long.

Under current plans, this increase will only last for a year.

The 3.1 percent rise will come into effect from April 11, 2022. It will last until April 2023.

The DWP has stressed that the rise is a one-year response to “exceptional circumstances” caused by the pandemic.

Will any other benefits will be affected?

It’s not just those on the state pension who will benefit from the rise next year.

All other benefits claimants will see their payments rise next year (although some rises will be higher than others). These include:

  • Attendance allowance
  • Carer’s allowance
  • Disability Living Allowance
  • Employment and Support Allowance
  • Housing Benefit
  • Incapacity Benefit (long-term)
  • Income Support
  • Jobseeker’s Allowance (contributions based)
  • Jobseeker’s Allowance (income-based)
  • Maternity/Paternity/Shared Parental Allowance
  • Pension Credit
  • Personal Independence Payment (PIP)
  • Widow’s Pension
  • Statutory Parental Bereavement Pay
  • Statutory Sick Pay

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