The Department for Work and Pensions could move its four-weekly state pension rates into one monthly payment worth nearly £1,000. The DWP is facing pressure from MPs to introduce changes to the State Pension system.
Liberal Democrat MP Rachel Gilmour asked in Parliament if the Labour Party government would consider amending the policy so payments go out in monthly instalments. It would mean four-weekly instalments of £169 or £221 for the Basic of Full State pension would merge into £734.50 or £958.50.
Labour pensions minister Emma Reynolds said: “State pension payments are usually paid four weekly in arrears. People have the option to be paid weekly or in some circumstances bi-weekly. There are no plans to introduce alternative payment arrangements.”
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Steven Cameron, pensions director at wealth firm Aegon, said: “If you averaged it out more, it would become more predictable and it might be more fair across generations.” The basic State Pension is usually paid every 4 weeks into an account of your choice. If you want to change the account, tell the Pension Service.
The day your pension is paid depends on your National Insurance number. When you claim your delayed (deferred) State Pension you’ll be asked when you want it to begin. You’ll get your first payment at the end of the first full week in which you want to start getting your pension.
You may have to repay the money if you did not report a change straight away, gave wrong information or were overpaid by mistake. You can claim your delayed State Pension by either calling the State Pension claim line, completing and posting the basic State Pension claim form or claim from abroad including the Channel Islands.
You need to claim the new State Pension instead if you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953.