Glossary
Plain English A–Z
Pension paperwork runs on a small vocabulary of words that are never defined on the page they appear on. Here they are, in a sentence or two each, with a link to the article that goes into it properly.
Additional State Pension
An earnings-related element built up under the pre-2016 rules, uprated by its own percentage.
Basic State Pension
The older system, which can be paid alongside Additional State Pension and other elements.
Council Tax Reduction
A reduction in a council tax bill, run by each local authority under its own scheme.
Deferral
Choosing not to take your State Pension when you reach State Pension age, in return for a higher rate later.
Four-weekly cycle
The usual State Pension payment pattern. Thirteen periods in a year, not twelve calendar months.
Frozen pension
A UK State Pension paid abroad in a country where the annual uprating does not apply.
New State Pension
The system for men born on or after 6 April 1951 and women born on or after 6 April 1953.
Pension Credit
A separate income top-up for pensioners on low incomes. It has to be claimed; it is not automatic.
Pension forecast
An official estimate of the State Pension you may get, based on your own National Insurance record.
Personal Allowance
The amount of income you can receive before Income Tax is due. Held at the same figure since 2021.
Qualifying year
A tax year in which you paid or were credited enough National Insurance for it to count towards your pension.
State Pension age
The earliest age at which you can claim your State Pension. Set by your date of birth.
Tax code
The instruction HMRC gives a pension or salary payer about how much tax to deduct.
Triple Lock
The comparison of earnings growth, price inflation and 2.5% that sets the annual increase to the full rates.
Uprating
The annual change to State Pension rates, applied from the start of the tax year in April.
Winter Fuel Payment
An annual contribution towards winter heating costs for pensioner households.
Where the official definitions live
Your own entitlement
The State Pension forecast service reads your own National Insurance record. Nothing on this site can do that.
The published rates
The DWP rates tables list every element and the percentage applied to it.
Questions about a payment
The Pension Service is the only body that can confirm what an individual is owed.
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