State pension: full details on upcoming changes in 2021 – payments, pension credit and dates | Personal Finances | Finance

Annuity credit

Pension credit can be given to those with particularly low income in retirement and payments can come in or be affected by many items.

The standard minimum guarantee rates for annuity credit will change as follows:

  • Single – from £ 173.75 now to £ 177.10 in 2021
  • Torque – from £ 265.20 now to £ 270.30 in 2021

The additional amounts provided for severe disabilities and caregivers will also see their prices increase:

  • Additional Severe Disability amount for single applicants – from £ 66.95 now to £ 67.30 in 2021
  • Additional Severe Disability amount for couples (where one qualifies) – – from £ 66.95 now to £ 67.30 in 2021
  • Additional Severe Disability amount for couples (where both qualify) – from £ 133.90 now to £ 134.60 in 2021
  • Extra amount for carers – from £ 37.50 now to £ 37.70 in 2021

Some pension credit applicants may receive an additional payment of what is known as a savings credit if they have set aside money for retirement.

These payments will be based on kinship status and the four affected rates will increase next year:

  • Threshold – single – from £ 150.47 now to £ 153.70 in 2021
  • Threshold – couple – from £ 239.17 now to £ 244.12 in 2021
  • Maximum – single £ 13.97 now to £ 14.04 in 2021
  • Maximum – torque – from £ 15.62 now to £ 15.71 in 2021

Having children, being in a polygamous marriage, and non-state pension considerations will also affect pension credit in the coming year.

As the following details explain:

  • First child born before April 6, 2017 – from £ 64.82 now to £ 65.10 in 2021
  • Next children – from £ 54.32 now to £ 54.60 in 2021
  • Reduced price for disabled children – from £ 29.52 now to £ 65.10 in 2021
  • Higher rate for children with disabilities – from £ 92.12 now to £ 92.54 in 2021
  • Amount for applicant and first spouse in polygamous marriage – from £ 265.20 now to £ 270.30 in 2021
  • Additional amount for additional spouse – from £ 91.45 now to £ 93.20 in 2021
  • Non-state pensions (for pension credit purposes) Minimum statutory increase in non-state pensions – from 1.7% currently to 0.5% in 2021