Ritchie welcomes changes to State Pension and Pension Credit paydays

Social Development Minister, Margaret Ritchie, has welcomed changes designed to streamline the payment arrangements for people making new claims to State Pension and Pension Credit.

People reaching State Pension age on or after 6 April 2010 will be allocated a payday based on their national insurance number, bringing State Pension and Pension Credit in line with recent changes to working age benefits. Payments will be made in arrears.

In addition, a part-week payment of State Pension will be made to those customers transferring from a working age benefit who would otherwise see a gap in their benefit income.

The Minister said: “The changes will mean that older people moving from a working age benefit to State Pension or Pension Credit will experience no disruption to their pattern of payments or break in payment.

“Part-week payments of State Pension will protect vulnerable customers who might otherwise experience a gap in their payments.”

Existing recipients of State Pension and Pension Credit will not be affected by the changes.

Notes to editors:

1. State Pension is usually paid either weekly in advance (most commonly when the customer is also receiving Pension Credit) or four-weekly in arrears. It may also be paid annually in arrears with the Christmas Bonus if the entitlement is less than £5 a week. Payments are for full weeks only.
2. Currently Pension Credit is normally paid weekly in advance by direct payment. Small amounts (less than £1 a week) can be paid 13-weekly when they are not combined with another benefit. Payments are for full weeks only.
3. Customers moving from a contributory working age benefit to State Pension and Pension Credit can see a gap of up to six days between reaching State Pension age and their first payment of their pension age benefit.
4. The proposed changes will provide for a part-week payment of State Pension, to be made to bridge the gap between the ending of the working age benefit and commencement of State Pension. The majority of people moving from income-related benefits to Pension Credit are protected under existing legislation.
5. This new approach will align benefit payment cycles for working age customers and pensioners whilst also ensuring that there is a seamless transition for those moving from working age benefits to pension age benefits and will therefore protect the most vulnerable customers from a gap in their income stream.
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