DWP sending over £921 to state pensioners early based on two-digit code | Personal Finance | Finance

The Department for Work and Pensions (DWP) will send more than £921 to some state pensioners early in May based on a two-digit code.

State Pension payments can be disrupted month to month by bank holidays, meaning pensioners have to make their cash last a little longer until their next payment arrives. As two bank holidays fall in May, some pensioners can expect to be paid earlier than usual next month – but when you get your payment is dependent on a two-digit code.

The May bank holidays fall at the beginning and end of the month, on Monday, May 4, and Monday, May 25, so pensioners who would normally receive their State Pension on a Monday may be paid earlier than normal next month.

If a State Pension payment is due on a bank holiday, the DWP will issue it on the earliest working day before. As such, if your payment is due on either May 4 or May 25, you will instead be paid by the DWP on the following days:

• If your State Pension payment is due on Monday, May 4, you’ll instead be paid on Friday, May 1
• If your State Pension payment is due on Monday, May 25, you’ll instead be paid on Friday, May 1

If your State Pension payment date is changing this month, you don’t need to do anything as your money will be paid straight into your usual bank, building society or credit union account.

The DWP explains: “Benefits are usually paid straight into your bank, building society or credit union account. If your payment date is on a weekend or a bank holiday you’ll usually be paid on the working day before.”

State Pension rates increased by 4.8% at the start of the new tax year on April 6, meaning pensioners will see the uplift reflected in their payments next month.

The increase takes the new State Pension up from £230.25 per week to £241.30, while the basic State Pension has gone up from £176.45 per week to £184.90. The State Pension is usually paid every four weeks and the amount pensioners receive depends on their National Insurance record.

For those with a full qualifying National Insurance record, the full new State Pension was worth a maximum of £921 every four weeks under the previous rates, while the full basic State Pension was worth £705.80 every four weeks.

As the new higher rates are now in place as of April 6, state pensioners with a full National Insurance record can expect to receive more than these amounts in their May payment, but the amount you receive will depend on when your payment date falls.

For example, if your pension date falls on May 1, your payment will still include some days under the old rate (from April 1 to April 6), but every pension payment from May 6 onwards will be at the higher rate as the uplift will have been in place for a full month.

The State Pension is typically paid every four weeks, and when you first claim it, you choose the date when you want to receive your payment.

Pensioners can determine their usual State Pension payment day by looking for the two-digit code at the end of their National Insurance number, as this specifies the date on which payments are normally issued. This is how National Insurance numbers correspond to payment days:

• 00 to 19 – paid on Monday
• 20 to 39 – paid on Tuesday
• 40 to 59 – paid on Wednesday
• 60 to 79 – paid on Thursday
• 80 to 99 – paid on Friday

So if your National Insurance number ends in 00 to 19, your usual payment date falls on a Monday, which may coincide with the May bank holidays. As such, payments will be issued on the earliest working day before Friday, May 1.

The DWP said: “You’ll be asked when you want to start getting your State Pension when you claim. Your first payment will be no later than 5 weeks after the date you choose. You’ll get a full payment every 4 weeks after that.

“You might get part of a payment before your first full payment. The letter confirming your State Pension payment will tell you what to expect.

“The day your pension is paid depends on your National Insurance number. You might be paid earlier if your normal payment day is a bank holiday.”