How to Budget for Christmas: Understanding State Pension Dates and Increases
Christmas is just two weeks away, and while it is a period of excitement for many, it can also be a very expensive time of year. With households already having to deal with the cost of living crisis, budgeting has become more important than ever. Knowing when your money is coming in and out can make a big difference, especially for those who receive the state pension.
State Pension Payment Dates
If you receive the state pension, the upcoming bank holidays may affect when you get your payments. The day of the week you receive your state pension depends on the last two digits of your national insurance number.
- 00 to 19 – Monday
- 20 to 39 – Tuesday
- 40 to 59 – Wednesday
- 60 to 79 – Thursday
- 80 to 99 – Friday
Here’s how payment dates are changing around Christmas and New Year:
- Expected payment date Monday 25 December (Christmas Day bank holiday) – will be paid on Friday 22 December
- Expected payment date Tuesday 26 December (Boxing Day bank holiday) – will be paid on Friday 22 December
- Expected payment date Wednesday 27 December – will be paid on Friday 22 December
- Expected payment date Thursday 28 December – paid as normal
- Expected payment date Friday 29 December – paid as normal
- Expected payment date Monday 1 January (New Year’s Day bank holiday) – will be paid on Friday 29 December
- Expected payment date Tuesday 2 January – will be paid either on Friday 29 December or Tuesday 2 January
Upcoming State Pension Increases
In his Autumn Statement, Jeremy Hunt announced that the state pension “triple lock” will remain unchanged, meaning it will increase by 8.5 percent from April 2024. Under the new full state pension, retirees will receive £221.20 per week, up from the current level of £203.85, equivalent to £11,541.90 per year. This is an annual increase of around £900 on this year’s state pension. People on the basic state pension will see their weekly amount rise to £169.50, up from £156.20, an annual increase of nearly £700, to £8,844.27 per year.
Claiming Your State Pension
Receiving the state pension doesn’t happen automatically when you reach retirement. You must register to claim it using an invitation code the Government will send you within three months of reaching state pension age. Alternatively, you can call the Pension Service on 0800 731 7898, and they will send you a claim form to fill in and post.
