State pension and benefits rise: How could the changes affect you?

Millions of people will see their state pensions and benefits rise on Monday as a new tax year begins.

State pensions will go up by 8.5%, meaning some pensioners will receive an extra £900 per year.

Meanwhile, those on Universal Credit will see their payments rise by 6.7% along with a number of other benefits.

The government says it is putting money back into the pockets of pensioners, but there are concerns hundreds of thousands of them may be dragged into paying tax for the first time.

Who qualifies for the pension rise?

State pension has gone up by 8.5% as of this week.

Those who retired after 2016, who have the full new state pension will see their payments rise to £11,502 this tax year.

The basic state pension, which is paid to those who reach state pension age before April 2016, is going to rise to £8,814.

Will all pensioners who qualify actually be better off from today?

Currently, pensioners can have the money tax-free up to £12,750.

Those on the the new full basic state pension, are already on more than £11,000 a year, so if they have an additional income, perhaps a company or personal pension, they will be paying tax on their income.

Universal Credit

Universal Credit claimants will receive a 6.7% increase, a rise which extends to other benefits including the personal independence payment, disability living allowance and employment and support allowance.

The amount people receive varies depending on circumstance, single people aged under 25 will now be getting £311, as opposed to the old rate, which was £292 per month.

But for example, if you're joint claimants and you're both aged over 25 and over, then you'll be getting £617 per month, and that's up from £576.

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