State Pension Rate Increase for the 2023-24 Tax Year

As set out in the written ministerial statement made by the Secretary of State for Work and Pensions on 17 November 2022, the state pension for the 2023-24 tax year is set to increase to 10.0999%.
state pension

State Pension

New State Pension

New State PensionRates 2022/23 (£)Rates 2023/24 (£)
Full rate185.15203.85
Transitional rate below full rate3.0902%10.0999%
Protected Payment3.10%10.10%
Increments – own (based on deferred new State Pension)3.10%10.10%
Increments – inherited (based on deferred old State Pension)3.10%10.10%

Old State Pension

CategoryRates 2022/23 (£)Rates 2023/24 (£)
Category A or B basic pension141.85156.20
Category B (lower) basic pension – spouse or civil partner’s insurance85.0093.60
Category C or D – non-contributory85.0093.60
Additional pensionRates 2022/23 (£)Rates 2023/24 (£)
Additional pension3.10%10.10%
Maximum additional pension (own + inherited)185.90204.68
IncrementsRates 2022/23 (£)Rates 2023/24 (£)
Basic pension3.10%10.10%
Additional pension3.10%10.10%
Graduated Retirement Benefit (GRB)3.10%10.10%
Inheritable lump sum3.10%10.10%
Contracted-out DeductionRates 2022/23 (£)Rates 2023/24 (£)
Contracted-out Deduction from AP in respect of pre-April 1988 contracted-out earningsNilNil
Contracted-out Deduction from AP in respect of contracted-out earnings from April 1988 to 19973.00%3.00%
Graduated Retirement BenefitRates 2022/23 (£)Rates 2023/24 (£)
Graduated Retirement Benefit (unit)0.14920.1643
Increase of long term incapacity for ageRates 2022/23 (£)Rates 2023/24 (£)
Increase of long term incapacity for age3.10%10.10%
Age 80 additionRates 2022/23 (£)Rates 2023/24 (£)
Addition at age 800.250.25
Increase of Long-term incapacity for ageRates 2022/23 (£)Rates 2023/24 (£)
Higher rate24.1526.60
Lower rate12.1013.30
Invalidity Allowance (Transitional) for State Pension recipientsRates 2022/23 (£)Rates 2023/24 (£)
Higher rate24.1526.60
Middle rate15.5017.10
Lower rate7.758.55

Bush & Co are here to help you with understanding your pension, please contact us for more information by calling 01392 432525 or emailing [email protected]

You can also find more on the benefit and pension rates for 2023 to 2024 by visiting, Benefit and pension rates 2023 to 2024 – GOV.UK (www.gov.uk)

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