UK State Pension Increases 2019/20
The state pension rates for 2019/20 have been announced. From April 2020 the new rates of UK state pension are:
- Old state pension: rate of £129.20 per week increases to £134.25
- New state pension: rate of £168.60 per week increases to £175.20
These increases fall under the “triple lock” system of annual reviews whereby the UK state pension increases by the higher of:
- Average earnings growth
- CPI or,
For 2019/20, the average earnings growth of 3.91% was the highest factor, therefore, both ‘old’ and ‘new’ state pension rates were adjusted upwards by 3.91%. The historic triple lock increases can be viewed here: http://bit.ly/3bhctJy
The distinction between the ‘old’ and the ‘new’ state pension follows reform of the system in April 2016.
Qualifying years prior to April 2016 were eligible for the old state pension and a person required 30 qualifying years on their National Insurance record to get the maximum amount of £133.20 per week.
Qualifying years after April 2016 were eligible for the new state pension and a person required 35 qualifying years on their National Insurance record to get the maximum amount of £173.80 per week.
Anybody with a working life extending before and after April 2016 and paying National Insurance contributions progressively will be accruing a hybrid of UK state pension entitlements under the ‘old’ and the ‘new’ state pension.