Only a fraction of pensioners receive the full £900 increase, with many receiving less

Prime Minister Rishi Sunak recently claimed that his government had raised the state pension by £900, but a closer look at the facts reveals that only a small portion of pensioners actually saw such an increase.

As of April 9, 2024, those receiving the full new state pension saw their annual payments rise by £900, but this applies to only around 1.5 million people out of the 12.6 million pensioners in total.

There are two types of state pension: the basic state pension for those who reached pension age before April 6, 2016, and the new state pension for those who reached it after that date. The full new state pension increased by 8.5% this year, boosting weekly payments from £203.85 to £221.20, equating to a £902.20 annual rise – roughly in line with Mr. Sunak’s claim.

However, those receiving the basic state pension saw a smaller increase. The highest payment for the old-style pension rose from £156.20 to £169.50 per week, a £691.60 yearly increase, which is less than what was suggested.

According to data from the Department for Work and Pensions, in November 2022, there were 9.58 million people on the basic state pension, compared to 3.06 million on the new state pension, with only around 1.53 million receiving the full amount.

The remaining new state pension recipients receive reduced weekly amounts, depending on their national insurance contributions over their lifetime. This means that a significant proportion of pensioners did not benefit from the full £900 increase.

These figures, based on November 2022 data, could have changed in the past 18 months as more people reached pension age, including those now residing abroad, though Northern Ireland cases are not included.