Pension payments are set to increase next month, with pensioners set to receive a £470 boost.

The increase was confirmed last year, when Chancellor Rachel Reeves announced the Government would be maintaining their commitment to the pension triple lock.

The triple lock guarantees an increase in pensions in line with average earnings, inflation or 2.5%, whichever figure is highest.

Making the announcement the Chancellor said: “This commitment means that while working-age benefits will be uprated in line with CPI at 1.7%, the basic and new state pension will be uprated by 4.1% in 2025-26.

“This means that over 12 million pensioners will gain up to £470 next year.”

Pension Credit is also increasing from April, with the Chancellor saying: “The pension credit standard minimum guarantee will also rise by 4.1% from around £11,400 per year to around £11,850 for a single pensioner.”

Who is eligible for pension credit?

Pension Credit is the most under-claimed benefit, aimed at providing extra financial support for older people on low incomes - both singles and couples.

You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit. To qualify, you'll need to have a weekly income of less than £218.15 if you’re single or £332.95 if you have a partner.

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If your income is higher, you may still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have to pay certain housing costs, such as mortgage interest payments.

It used to be the case that couples, where one person was over state pension age, could claim, but new rules now mean that both people in a couple must be over state pension age to apply. So, if you're single and move in with a partner who is younger than the threshold, you will stop being eligible.

But if you're already receiving pension credit under the old system it won't stop unless your circumstances change.

Pension warning to parents who risk losing out on £33k

Parents have been warned they risk losing out on up to £33,000 when they retire if they took time out of work to care for their children.

Experts have issued an urgent warning to any parents who took a break from work when caring for their young children in the last decade.

Failing to fill gaps in their National Insurance record before the deadline on April 5 could result in them losing up to £33,000.

Amy Knight, personal finance expert at NerdWallet UK, explained: “Having babies can lead to losing out on more than just sleep.

“Stay-at-home parents, or those working part-time hours may have ‘missing’ or ‘partial’ years on their NI record, where they have not paid in enough NICs, putting their state pension in jeopardy.

“Around 1.6 million parents who had young children between 2016 and 2018 need to check their NI record urgently before the tax year ends.

“Those who waited until their child started school at age 4 before returning to work could see their annual state pension income reduced by £1,310 per year.

“Over a 25-year retirement, this could amount to a loss of almost £33,000 or more as the state pension increases.

“Right now, voluntary contributions are being accepted for the tax years 2016-17 and 2017-18, but time is running out.

“The window to plug holes in your NI record for these years will close at midnight on April 5 – now is your chance to make the years you spent juggling toddlers count.

“It takes just 15 minutes to log into the government website to check your NI record, find out if you’re eligible to make voluntary payments to turn these into qualifying years, and complete the transaction to HMRC using online banking.”