The DWP has confirmed that state pension payments will change for some British nationals at the start of next year which many will need to be aware of and how it affects their income.
The State Pension is a regular payment from the Government that you can claim when you reach your State Pension age.
Currently, the state pension age is 66 for both men and women and is based on your National Insurance record.
It takes into account the National Insurance you built up before the new State Pension was introduced in 2016, as well as contributions and credits since then - meaning that not everyone will receive the same amount.
The full rate of the new State Pension is currently £179.60 a week – that’s just over £9,350 a year.
However, the UK Government has now confirmed plans to change the rules on how State Pension is calculated if you move abroad because the UK has now left the EU, reports our sister site Daily Record.
The GOV.UK guidance states that the change in State Pension calculation will affect people who move to live in the EU, EEA or Switzerland and those who have previously lived in:
Australia, before March 1, 2001
Canada
New Zealand
The GOV.UK website confirmed that from January 1, 2022, you will no longer be able to count periods living in Australia (before March 1, 2001), Canada or New Zealand, towards calculating your UK State Pension if both the following apply:
you are a UK national, EU or EEA citizen or Swiss national
you move to live in the EU, EEA or Switzerland on or after January 1, 2022, including if you move to live in another EU, EEA country or Switzerland on or after January 1, 2022
The Department for Work and Pensions (DWP), which delivers State Pension, explained on GOV.UK : “The change will affect you whether or not you have claimed your UK State Pension yet.
“Your UK State Pension will be calculated, or recalculated if already in payment, using only your UK National Insurance record.”
The DWP added that this change will need to be approved by the UK Parliament.
