State Pension

If you’re getting a State Pension, you’ll see a 3.9% rise in the weekly rate from 6 April 2020:

  • if you’re getting the old State Pension, the full rate has increased from £129.20 to £134.25 a week
  • if you’re getting the new State Pension, the full rate has increased from £168.60 to £175.20 a week.

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

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

Guarantee Pension Credit for a single person

£173.75

Guarantee Pension Credit for a couple

£265.20

Savings Pension Credit maximum for a single person

£13.97

Savings Pension Credit maximum for a couple

£15.62

There have also been changes to eligibility for Pension Credit for mixed-age couples, so make sure you’ve checked whether they affect you.

State Pension age

The State Pension age is now the same for all genders. It was 65 in December 2018 and is now increasing to reach 66 by October 2020. 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 – has increased to £1,073,100 for 2020/21.

Disability benefits

If you’re claiming Attendance Allowance – the disability benefit for people who have reached State Pension age – the increased weekly rates for 2020/21 are:

Higher rate

£89.15

Lower rate

£59.70

 

If you’re claiming Personal Independence Payment – the disability benefit for people under State Pension age – the increased weekly rates for 2020/21 are:

Daily living component enhanced rate

£89.15

Daily living component standard rate

£59.70

Mobility component enhanced rate

£62.25

Mobility component standard rate

£23.60

 

If you’re claiming Disability Living Allowance – gradually being replaced by Personal Independence Payment – the increased weekly rates for 2020/21 are:

Care component highest rate

£89.15

Care component middle rate

£59.70

Care component lowest rate

£23.60

Mobility component higher rate

£62.25

Mobility component lower rate

£23.60

Carer's Allowance

Carer’s Allowance has increased from £66.15 to £67.25 a week for 2020/21. The weekly earnings limit has increased from £123 to £128. If you’re caring for a friend or family member and aren’t claiming this benefit, read our information on Carer’s Allowance for more about who qualifies.

Tax allowances

The personal allowance – the amount you can earn before you start paying tax – will remain at £12,500 a year.

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 £1,250.

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 remains at £2,450 for 2020/21.

The threshold for paying the higher rate of income tax (40%) remains the same at £50,000. If your income is between the personal allowance of £12,500 and £50,000 a year, you’ll pay the basic rate (20%). If your income is over £150,000, you’ll pay 45%.

ISA limits

If you’re paying into an ISA, the savings limit remains unchanged at £20,000 for 2020/21.

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 0800 319 6789 to arrange a free benefits check.

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