State Pension, Pension Credit, and other Department for Work and Pensions (DWP) benefit payments may arrive earlier than usual this week due to the Easter bank holidays.
State Pension and Pension Credit Increase
From April 6, 2025, the full new State Pension increased to £11,973 a year, bringing it perilously close to the £12,570 personal tax-free allowance — a change that could have significant consequences for pensioners.
It’s estimated that an additional 650,000 pensioners will be dragged into paying income tax in 2025-26, due to the frozen personal allowance and rising pension rates.
This issue particularly affects widows and widowers who may receive part of a late partner’s state pension or military pension, potentially pushing their income over the tax threshold.
Petition Gaining Traction
The tax implications for pensioners have sparked a wave of concern. A petition launched by Alan David Frost, calling on the government to raise the personal tax allowance from £12,570 to £20,000, has gained almost 250,000 signatures.
“We think it is abhorrent to tax pensioners on their State Pension when it is over the personal allowance,” the petition reads. “Raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy creating growth.”
The petition also argues that increasing the allowance would reduce reliance on benefits and give pensioners a fairer standard of living.
What You Can Do
- Check your bank account early if you’re expecting a payment over the Easter weekend.
- Contact the DWP if your payment hasn’t arrived by the expected date.
- Sign the petition if you support raising the tax-free allowance.
- Read official guidance on additional state pension and survivor benefits if you believe you may be affected.
For further updates on DWP payment schedules and pensions, visit gov.uk.
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