State pensioners receiving Additional Pension payments from the Department for Work and Pensions (DWP) could pocket an extra £439 annually.
Since April 6, eligible older state pensioners have seen their maximum AP payments rise from £222.10 per week to £230.54 per week.
This amounts to approximately £439. Numerous individuals will have attained State Pension Age or accrued qualifying years prior to April 6, 2016.
The framework in place before that date primarily comprised two state pensions: the Basic State Pension and the Additional State Pension.
The Basic State Pension resembles the new State Pension, functioning as a flat-rate pension benefit (governed by distinct regulations). The present full rate of Basic State Pension stands at £169.50 per week.
This figure will climb to £176.45 per week in April 2025. The £361 annual increase was confirmed in the Budget delivered on October 30, 2024, reports Birmingham Live.
The Additional State Pension principally encompasses two earnings-linked pension benefits operational between 1978 and 2002 (SERPS) and from 2002 to 2016 (the State Second Pension).
These were disbursed alongside the Basic State Pension. Combined, the Basic State Pension and Additional State Pension proved more advantageous, on average, than the new State Pension.
Those who reached State Pension Age before April 6, 2016, would have become entitled to Basic State Pension and Additional State Pension according to the criteria for those schemes.
Which? clarifies: “Before 2002, you could only contribute to the additional state pension (then known as the state earnings-related pension scheme, or Serps) if you were employed.
“However, under the state second pension scheme, which ran from 2002 to 2016, you could contribute through your National Insurance contributions if you were an employee earning at least £113 a week, caring for one or more children under 12 and claiming child benefit, claiming carer’s credit or claiming certain disability-related benefits.”
The organisation further notes: “There is no fixed amount for the additional state pension. The amount of additional state pension you’ll get depends on how many years you paid National Insurance for, how much you earned and whether you contracted out of the scheme.
“The maximum additional state pension you can get in 2026-27 is £230.54 a week (not including state pension top-up).”