As an example, if someone had 25 qualifying years on their National Insurance record, they would divide £179.60 (the full state pension) by 35, and then multiply that by 25 to see the value of their state pension under the new rules, which would be around £128.29 per week.
Obviously, most people will have some National Insurance contributions from before April 6, 2016, and these new rules are more likely to apply to people who were born after the year 2000 or who became a UK resident after 2015.
The value of the state pension increases every year under the state pension triple lock policy, which was introduced in 2010 and helps Britain’s pensioners maintain their spending power. The triple lock guarantees that the value of the state pension will increase by the rate of inflation, average earnings growth, or 2.5 percent, whichever is higher.
However, the Government recently announced that they will not be honouring the triple lock for next year, breaking a 2019 manifesto pledge.
This is due to the fact that average earnings growth has ballooned of late, because of many of Britain’s workers coming off the furlough scheme as the country recovers from the COVID-19 pandemic.