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Pension reforms start in April

Caxton House SignAn increase in the state pension rate is among a number of welfare reforms to come into effect throughout April 2018.

2 April

Funeral expenses payment

For people on qualifying benefits, Funeral Expenses Payments contribute towards the cost of arranging a funeral. From 2 April, it has been made simpler for people to claim a Funeral Expenses Payment. Changes include extending the period in which a claim can be made and allowing recipients to receive contributions from friends and family without them being deducted from the payment.

6 April

Automatic enrolment into a workplace pension

To help workers to save for their future, the automatic enrolment pension contribution rates also increased from 2% to 5% on 6 April 2018.

Automatic enrolment was created to help people with their long-term pension savings and works by requiring employers to enrol all eligible staff into a workplace pension. An estimated 10 million people will be newly saving or saving more later this year and the increase in minimum contribution rates will build on this success.

9 April

State pension

The State Pension has also increased from 9 April, in line with the ‘triple lock'. The full basic State Pension was put up by 3% to £125.95 a week. This means that the government will have raised the full basic State Pension by £1,450 a year since 2010. The full rate of the new State Pension also increased by 3%, to £164.35 a week.

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