{"id":191118,"date":"2025-06-17T07:43:09","date_gmt":"2025-06-17T07:43:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/191118\/"},"modified":"2025-06-17T07:43:09","modified_gmt":"2025-06-17T07:43:09","slug":"dwp-rule-allows-thousands-of-claimants-to-get-20000-a-year-increase-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/191118\/","title":{"rendered":"DWP rule allows thousands of claimants to get \u00a320,000-a-year increase | Personal Finance | Finance"},"content":{"rendered":"

Over half a million people are enjoying a boost to their state pension<\/a> worth more than \u00a35,000 per year thanks to inheriting another person’s payments.<\/p>\n

DWP<\/a> data sourced by Royal London<\/a> found that in the 2023\/24 tax year, over two million pensioners (approximately 2,027,440 people) received a payment from an inherited state earnings-related pension scheme (Serps), part of the old state pension<\/a> system.<\/p>\n

The figures show that around 541,760 pensioners were receiving more than \u00a35,000 annually in inherited Serps payments, including 17,460 who received over \u00a310,000.<\/p>\n

If a spouse or civil partner passes away, the surviving partner may be eligible to inherit part of their additional state pension<\/a>. This would be paid on top of the survivor’s own state ension when they reach the current retirement age of 66.<\/p>\n

Surviving spouses and civil partners could potentially inherit up to an annual maximum of approximately \u00a311,356.28 (\u00a3218.39 per week) for the 2024\/25 tax year.<\/p>\n

For the 2023\/24 tax year, the weekly maximum amount of inherited Serps was slightly lower, at \u00a3204.68. The DWP<\/a> has disclosed the figures from its quarterly statistical survey, revealing that the average annual inherited Serps payment for 2023\/24 stands at \u00a33,377, as reported by Royal London.<\/p>\n

However, you could get an even bigger boost to your state pesion through the scheme, with the potential for an extra \u00a320,000 annually.<\/p>\n

Looking over the figures, Sarah Pennells, consumer finance expert at Royal London, said: “This data shows how much of a difference inheriting a Serps pension from your husband, wife or civil partner can make.<\/p>\n

“The worry is that, while more than two million people are claiming inherited Serps, others could be missing out. Understanding the rules is key to boosting your retirement income.”<\/p>\n

A new state pension<\/a> system came in from April 2016, with simplified payments for those retiring after this data. Ms Pennells further explained: “As we continue to adapt to the new system introduced in 2016, which focuses on individual entitlements, understanding the legacy of Serps and its relevance for thousands of retirees remains crucial.”<\/p>\n

Royal London urges those uncertain about their inherited Serps rights to get in touch with the Pension Service<\/a> for more information.<\/p>\n

What happens to state pension payments after a person dies<\/p>\n

In the event of a death, it’s important to know that state pension<\/a> claims don’t automatically cease. The family need to notify the Pension Service to halt payments.<\/p>\n

To report a death and stop the pension, contact the Pension Service helpline at 0800 731 0469. A person may be eligible for additional payments derived from their late spouse’s or civil partner’s state pension.<\/a><\/p>\n

Your eligibility hinges on the deceased person’s National Insurance contributions and the date when they were of age to receive the state pension<\/a>. If you’re yet to reach state pension<\/a> age, you may also be able to get bereavement benefits.<\/p>\n

How to inherit a basic state pension<\/p>\n

In cases where a spouse or civil partner reached state pension<\/a> age before April 6, 2016, the Government website advises contacting the Pension Service to find out what you can claim.<\/p>\n

You may be able to boost your basic state pension<\/a> by applying the qualifying years of a deceased partner, particularly if you don’t already receive the maximum amount.<\/p>\n

For those reaching state pension<\/a> age on or after April 6, 2016, the Government website has a tool<\/a> to check your partner’s NI record and whether there are any inheritable amounts.<\/p>\n

Single people, divorcees or those whose civil partnership has been dissolved may find that their estate is entitled to some portion of a deceased person\u2019s basic state pension<\/a>.<\/p>\n

This applies if the individual passed away after reaching state pension<\/a> age, and only if they hadn’t claimed their state pension<\/a>. In this case, the estate could lay a claim to as much as three months of the basic state pension<\/a>.<\/p>\n

Other cases where you may be able to inherit part of a person’s state pension<\/p>\n

According to guidance on GOV.UK, anyone who has topped up their state pension<\/a> may enable their spouse or civil partner to inherit some or all of the top-up.<\/p>\n

You may also be able to inherit an additional payment on top of your new state pension<\/a> if you are widowed. However, should an individual remarry or enter into a new civil partnership before reaching state pension<\/a> age, they will not be eligible to inherit anything.<\/p>\n

In cases where a marriage or civil partnership began before April 6, 2016 and one of the following circumstances applies, then a person may be able to inherit part of their deceased partner\u2019s additional state pension<\/a>. These are:<\/p>\n