What does the new financial year mean for me?

State Pension

If you’re getting a State Pension, you’ll see a 3.1% rise in the weekly rate from 6 April:

if you’re getting the old State Pension, the full rate has increased from £137.60 to £141.85 a week
if you’re getting the new State Pension, the full rate has increased from £ 179.60 to £185.15 a week.

Not sure which system you’re claiming under? Read our factsheet Understanding your State Pension.

If you’re getting Pension Credit, the weekly rates have also increased:

Guarantee Pension Credit for a single person	£182.60
Guarantee Pension Credit for a couple	£278.70
Savings Pension Credit maximum for a single person	£14.48
Savings Pension Credit maximum for a couple	£16.20
Severe disability addition	£69.40
Carer's addition	£38.85

State Pension age

The State Pension age is now the same for all genders. It was 66 in October 2020 and will increase to 67 between 2026 and 2028. Further increases are planned after that. If you want to know when you’ll reach State Pension age, visit gov.uk/state-pension-age.

Personal pensions

The lifetime allowance – the maximum amount you can build up without having to pay extra tax charges – remains at £1,073,100 for 2022/23.

Disability benefits

If you’re claiming Attendance Allowance – the disability benefit for people who have reached State Pension age – the increased weekly rates for 2022/23 are:

Higher rate	£92.40
Lower rate	£61.85

If you’re claiming Personal Independence Payment – the disability benefit you can start claiming when you’re under State Pension age – the increased weekly rates for 2022/23 are:

Daily living component enhanced rate	£92.40
Daily living component standard rate	£61.85
Mobility component enhanced rate	£64.50
Mobility component standard rate	£24.45

If you’re claiming Disability Living Allowance – gradually being replaced by Personal Independence Payment – the increased weekly rates for 2022/23 are:

Care component highest rate	£92.40
Care component middle rate	£61.85
Care component lowest rate	£24.45
Mobility component higher rate	£64.50
Mobility component lower rate	£24.45

Carer's Allowance

Carer’s Allowance has increased from £67.60 to £69.70 a week for 2022/23. The weekly earnings limit has increased to £132. If you’re caring for a friend or family member and aren’t claiming this benefit, read our information on Carer’s Allowance to find out more about who qualifies.

Tax allowances

The Personal Allowance – the amount you can earn before you start paying tax – remains at £12,570 a year. This is the same in England, Scotland and Wales.

Marriage Allowance lets you transfer part of your Personal Allowance to your husband, wife or civil partner if you’re on a low income and they earn more than you. The amount you can transfer remains at £1,260.

If you’re in Scotland, the higher earner must usually have an income between £12,571 and £43,662 and pay the relevant rates of income tax.

Blind Person's Tax Allowance

If you are registered blind or severely sight-impaired, you can claim Blind Person’s Tax Allowance, which adds an extra amount to your Personal Allowance. This has increased to £2,600 for 2022/23. To find out if you qualify, visit Gov.uk.

Income Tax bands and rates

You will pay the following rates of Income Tax once your Personal Allowance (£12,570) has been taken into account, depending on how much you earn.

In England and Wales

£12,571 - £37,700	Basic rate	20%
£37,701 - £150,000	Higher Rate	40%
Over £150,000	Additional rate	45%

In Scotland

£12,571 - £14,732	Starter rate	19%
£14,733 - £25,688	Scottish basic rate	20%
£25,689 - £43,662	Intermediate rate	21%
£43,663 - £150,000	Higher rate	41%
Over £150,000	Top rate	46%

National Insurance

From 6 April, people in work will pay National Insurance contributions on earnings above £9,880 a year. From July, the government is raising this threshold and people will pay on earnings above £12,570 a year.

If you are State Pension age, you do not have to pay National Insurance.

ISA limits

If you’re paying into an ISA, the savings limit remains unchanged at £20,000 for 2022/23.

Next steps

If you’re wondering whether you qualify for any of the benefits mentioned here, try our online benefits calculator or call us on 0333 696 7907 to arrange a free benefits check.