State pension boost in 2014

By Paul Lewis , Monday 2 December 2013

The basic state pension should rise by £2.95 to £113.10 a week from April 7, 2014, writes Paul Lewis.
Money collageSlightly more state pension could be coming your way next April
The Government has promised to increase the state pension by the annual percentage rise in earnings or by prices as measured by the consumer price index (CPI) or by 2.5%, whichever is highest – an arrangement called the ‘triple lock’.

In the past 12 months earnings rose by less than 1% but annual CPI inflation rose to 2.7% in September, so it is being used as the basis for the 2014 rise in the basic state pension.

The married woman’s category B pension will grow by £1.80 to £67.80. Graduated pensions and earnings-related SERPS and S2P additional pensions should also all rise by 2.7%. Pension credit is expected to rise by rather less than that.

Many other benefits will increase by just 1% as they are no longer linked to inflation, but disability, carer’s and bereavement benefits and premiums should rise by 2.7%.

* This article first appeared in the December 2013 edition of Saga Magazine, where you can read Paul Lewis's money articles every month.

The opinions expressed are those of the author and are not held by Saga unless specifically stated.

The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

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  • Terence Dowling

    Posted: Thursday 20 March 2014

    I MUST SAY THAT ...SAGA ,DO A WONDERFUL JOB IN GIVING GOOD ADVICE TO THE ELDERELY

  • valerie ann turner

    Posted: Tuesday 04 March 2014

    Im 65 in Oct 2014 will I be able to get pension credit, no savings basic pension 146.85 weekly plus small private pen of 19.21 per month

  • A Johnson

    Posted: Tuesday 25 February 2014

    Similar situation. Having contracted out on the Government of improving my pension I now find that I am stopped the equivalent from my state pension and increasingly taxed on my Occupational pension, If I had not bothered I wouldn't have been taxed on my full state pension, its now even worse thanks to freezing the Allowance at £10500, Thanks

  • H Clarke

    Posted: Monday 24 February 2014

    The Pension Service is increasing my pension by £8.53 per week, thanks. H M Revenue & Customs are increasing the tax I pay by £4.34 per week, no thanks. Seems a bit more than 20%.

  • J l smith

    Posted: Sunday 23 February 2014

    Yes I fully agree with m Emmett this is not generally known so after paying income tax for all our working lives we are again being penalised. Of course we are also being taxed on our savings, need I say more.

  • jimmy smith

    Posted: Monday 10 February 2014

    WHO DO THEY THINK THEY ARE THEY GIVE ME £2.90 RISE AND WILL BE TAKING £2 OFF MY PEN/CREDITS WHAT A JOKE. WHY DONT PPL STAY AT HOME WHEN ITS TIME TO VOTE THEN MAY BE THEY WILL LISTEN TO US FOR ONCE (((( WE ARE IN THE DRIVEING SEAT NOT THEM WAKE UP PEOPLE )))) WE ARE TO DUM IN THIS PLACE WE CALL HOME THE UK.

  • ivan dexter

    Posted: Wednesday 29 January 2014

    bring back the married couples allowence,sooner rather than later.

  • Mike Satiar

    Posted: Sunday 26 January 2014

    Chancellor raised pension by 2.5% but it would have been better to increase the personal allowance instead. People with private pension will have to pay more tax as tax code will alter to compensate 2.5%
    Therefore people with private pension wil be worse of

  • m emmett

    Posted: Monday 16 December 2013

    So the state pension is to to get a boost in april 2014,i suppose those in goverment will be crowing and telling the world how good they are to pensioners,Mmmmm but they will not be in a hurry to tell the world that it is a con because those of us who have worked hard to provide ourselves, like me with a small private pension which puts them outside the £10,500 a year tax allowance will be handing back 20% of their increase to the goverment.

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