The UK government has confirmed an increase in the state pension for the 2024–25 tax year by reintroducing the triple lock policy.
This policy ensures a yearly rise based on the highest inflammation, average earning growth, or 2.5%.
According to the policy, the full new state pension will increase to 221.20 euros per week, up from 203.85 euros in the previous year for those who retired after 2016.
The basic pension will rise to 169.50 euros per week, up from 156.20 euros per week.
Chancellor Rachel Reeves has confirmed the government’s commitment to maintaining the triple lock until the end of the current parliament, ensuring the importance of financial security for retirees.
This year’s 8.5% increment is the highest increment of the year. However, the removal of winter fuel payments for many pensioners could offset some benefits.
From the next year, April 2025, the full new state pension is expected to rise by an additional 460 euros per year, which is close to 1200 euros annually. This is considered wage growth, which is up to 4% growth.
With the wage growth of pensioners, the state pension adjustments also do some growth on the rates like PIP (Personal Independence Payment), DLA (Disability Living Allowances), and ADP (Adult Disability Payment) to support the disabled for their daily living and mobility.
PIP is administered by the Department of Work and Pensions (DWP) across the UK, whereas ADP is specific to Scotland and managed by Social Security Scotland.
However, as per the new scheme, the PIP will rise by 108.55 euros per week up from 72.65 euros per week for daily living.
For the mobility component, the rate was increased by 75.75 euros per week from 28.70 euros per week. The payment is non taxable and unaffected by others source of income or savings.
The ADP rate is rising by 101.75 euros per week up to 68.10 euros per week for daily expenses, and for the mobility component, it is rising by 71 euros per week up from 26.90 euros per week.
Individuals must have a long-term mental or physical disability that disrupts their daily lives and meet these criteria to get the benefits.
The severity is measured through some assessment, and the benefits are determined by the score of the severity of the disability.
PIP, DLA, and ADP indirectly boost an individual’s financial support for those who live in the UK as they approach or determine by assessment.
