Pensions & Benefits

Pensions & Benefits

The basic State Pension is a regular payment from the government that an individual may be entitled to when they reach state pension age.

The basic State Pension depends on the number of years an individual has paid National Insurance or got National Insurance credits, e.g. while unemployed or claiming certain benefits.

To get it and individual must have paid or been credited with National Insurance contributions (NIC).

To get the full basic State Pension an individual needs 30 years worth of contributions or credits.

An individual may also be entitled to the Additional State Pension. How much an individual gets depends on the number of qualifying years NIC, the amount of earnings and whether the individual has been contracted out of the scheme.

Weekly Benefit
2015/2016 2016/2017
Basic Retirement Pension
Basic person £113.10 £119.30
On husband’s insurance £67.80 £71.50
Addition at age 80 £0.25 £0.25
Value of graduated pension unit 0.1314% 0%
Child Benefit & Guardian’s Allowance
Child Benefit – eldest or only child £20.50 £20.70
– each other child £13.55 £13.70
Guardian’s Allowance £16.35 £16.55
The revised scheme
With effect from the week beginning Monday 7 January 2013, where one parent’s income exceeds £50,000 a year he or she will suffer a special income tax charge calculated as 1% of the family’s total Child Benefit entitlement for each £100 by which his or her income exceeds £50,000. For 2012/13, that will be the Child Benefit entitlement for the period 7 January to 5 April 2013; for later years, it will be the full entitlement for the year.
Statutory Sick Pay (SSP)
Earnings threshold £111.00 £112.00
Standard rate £87.55 £88.45
From the 6 April 2014 employers will no longer recover SSP.
Maternity and Paternity Benefits
Maternity Allowance
– earnings threshold £30.00 £30.00
– standard rate £138.18 £139.58
Statutory Maternity, Paternity & Adoption
– earnings threshold £111.00 £112.00
– standard rate £138.18 £139.58
Large employers will continue to be able to recoup 92% of the SMP/SPP/SAP pai and small employers 100% plus 3% NIC compensation. The annual contributions test for a smalll employer status is £45,000.
Carer’s Allowance
Standard rate £61.35 £62.10
Earnings rule £100.00 £100.00
Incapacity Benefit
Long term £104.10 £105.35
Short-term (under state pesion age)
– lower rate £78.50 £79.45
– higher rate £92.95 £94.05
Bereavement Benefit
Bereavement payment (lump sum) £2,000.00 £2,000.00
Widowed parent’s allowance £108.30 £112.55
Bereavement allowance ( Standard rate) £108.30 £112.55
Employment & Support Allowance
Age under 25 £56.80 £57.90
Age 25 and over £71.70 £73.10