DWP state pensioner benefit change hitting bank accounts from April | Personal Finance | Finance

April marks the start of a new tax year and with it a swathe of changes to benefits payments will take effect, giving state pensioners a welcome boost in their bank accounts.

The State Pension increases at the start of every new tax year on April 6 and the amount it goes up is based on three factors, known as the ‘triple lock’. The new pension rates are determined by whatever is highest out of the consumer price index (CPI) measure of inflation (measured for September the year before), average wage growth between May and July of the previous year, or 2.5%. This year, the basic and new State Pensions will be uprated by 4.1%, in line with the annual increase in the average weekly earnings index for May to July 2024.

The Department for Work and Pensions (DWP) has also confirmed that Attendance Allowance – a benefit available to those who have reached State Pension age and have a health condition or disability – will also be rising from April, giving claimants an extra dose of cash in their pockets.

The amount you can get is dependent on the level of care you need. Currently, the lower rate is £72.65 per week and is given to those who need frequent help or constant supervision during the day or at night. If you qualify for this you can get £3,777.80 per year.

The higher rate is £108.55 and is given to those who need help or supervision throughout the day and night, or if a medical professional has said you’re nearing the end of life. If you qualify for the higher rate you can get £5,644.60 per year.

But from April 7, Attendance Allowance payment rates will increase by 1.7% in line with inflation, taking the lower rate up to £73.90 per week, and the higher rate up to £110.40.

It means those who get the lower rate can get £3,842.80 per year (an extra £65 annually), while those on the higher rate can get £5,740.80 per year (an extra £96.20 annually)

You could also get extra Pension Credit, Housing Benefit or a Council Tax Reduction if you get Attendance Allowance, so it’s worth checking if you qualify.

You can get Attendance Allowance if you’ve reached State Pension age AND the following apply:

• you have a physical disability, a mental disability, or a health condition
• your disability or health condition is severe enough for you to need help caring for yourself or someone to supervise you, for your own or someone else’s safety
• you have needed that help for at least six months

You must also live in Great Britain, or be habitually resident in the UK, Ireland, Isle of Man or the Channel Islands, and not be claiming Disability Allowance, Personal Independence Payment or Adult Disability Payment.

You can apply for Attendance Allowance online via GOV.UK or by sending a claim form by post to Freepost, DWP Attendance Allowance. You can contact the Attendance Allowance helpline on 0800 731 0122 to request a claim form.

After you’ve applied you’ll get a tax or letter from the DWP within three weeks that explains when you can expect a decision. Once this is made you’ll get another letter explaining the outcome and if you’re awarded the benefit you’ll be told when to expect your first payment.