Basic state pension meaning

The single tier State Pension (on and from 6 April 2016) On 6 April 2016, the Basic State Pension was overhauled and replaced by a single-tier, flat-rate pension, merging the Basic State Pension with the Second State Pension. From that date, men and women alike must have 35 qualifying years of National Insurance contributions to receive the full flat-rate amount. Marital status makes no difference to the level paid. Tax year Amount (per week) 2026/2027 £241.30 2025/2026 £230.25 2024/2025 £221.20 2023/2024 £203.85 2022/2023 £185.15 2021/2022 £179.60 2020/2021 £175.20 2019/2020 £168.60 2018/2019 £164.35 2017/2018 £159.55 2016/2017 £155.65 The Basic State Pension (before 6 April 2016) Before 6 April 2016, the Basic State Pension comprised the Basic State Pension and the Second State Pension. There was a third, minor, component known as the graduated pension that depended on graduated National Insurance contributions paid by employees while the graduated scheme ran from 1961 to...

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In a report dated 29 July 2024, Hymans Robertson LLP argued that reshaping the existing pension tax relief regime could unlock more than £20bn each year for the new Labour administration to channel into the UK’s growth sectors. At present, the state offers tax relief on pension payments, providing savers with a financial nudge to contribute. Under this arrangement, basic-rate payers receive 20% relief, so £800 of net pay becomes a £1,000 pension input thanks to a £200 addition from the government. The policy aims to promote saving, yet a sizeable share is reclaimed when pensions are withdrawn in retirement, as that income is taxable. Typically, a standard employee hands back £150 of the £200 benefit through tax on their pension income. This cycle reflects how incentives are largely offset by later taxation ultimately...

Pensioner Poverty: challenges and mitigations With more older people slipping into poverty, the Work and Pensions Committee’s report clearly contends that ministers should adopt a clear target for a minimum level of retirement income. It says the State Pension must fully secure a basic, dignified standard of living, and that a government strategy should then be set out to help everyone reach that benchmark, recognising the financial setbacks affecting many, including the 2.1 million still on the old State Pension. The report stressed that relying on safety nets such as Pension Credit and Housing Benefit alone is simply insufficient on its own...

This Practice Note outlines the available resources concerning safeguards and liabilities arising from acts or failures to act that constitute sexual orientation discrimination, or other forms of prohibited conduct linked to sexual orientation. The detail here is intentionally limited, as the principal aim is to point subscribers towards comprehensive materials contained in additional Practice Notes that explore each element in depth. Consequently, treat this Practice Note as an entry point for research; full coverage is provided only in the places signposted below. Its role is to point you forward, not to replace the comprehensive Practice Notes that address each strand of the topic at length, and the links below are where complete information is intended to be consulted and used. The characteristics protected The Equality Act 2010 (EqA 2010) affords protection against discrimination and other prohibited conduct connected to particular listed characteristics a person may have. Some protections apply solely to one such characteristic. Others operate uniformly across all of them, which together are described as ‘the protected...

Brexit impact The UK ceased to be an EU Member State on exit day, 31 January 2020. Under the Withdrawal Agreement, the state pension and benefit rights of UK nationals residing in the EU, European Economic Area (EEA) or Switzerland are protected. See: Benefits and pensions for UK nationals in the EU, EEA or Switzerland. Likewise, information on the entitlements of EEA and Swiss citizens to UK benefits and state pensions is set out at: Benefits and pensions for EEA and Swiss citizens in the UK. State pensions A state retirement pension depends on an individual’s National Insurance (NI) contribution record and may consist of up to three elements: the basic old age pension the State Second Pension (S2P—formerly the State Earnings Related Pension Scheme, SERPS) the graduated pension Payments are generally made gross, with tax collected through Pay As You Earn (PAYE) against a person’s other income, such as an occupational or private pension. Income tax can also...

This Practice Note outlines the varieties of state pension, the eligibility rules, the ramifications in divorce, dissolution, nullity or separation cases, how to obtain information and make disclosure, and the orders a family court may impose. It takes account of state pension reforms and explains their impact within family law. This Practice Note provides guidance on: the old state pension scheme for those who reached state pension age before 6 April 2016, and the new state pension scheme for those reaching state pension age on or after 6 April 2016 State pension entitlements are often missed on divorce, dissolution, nullity or (judicial) separation, either because they are seen as of limited worth or because their structure and the options available to address the parties’ financial needs are not fully understood. Comprehensive details of state pension rights should be gathered during financial disclosure by using Form BR19 (to request a state pension forecast) and Form BR20 (to obtain a cash equivalent (CE)...