Pension increased by £201, but now I am paying £212 per annum more tax.

molerat

This year my tax code has decreased by 98 points and I am paying £38 per month more tax on my work pensions than I was last year but my state pension is paying me £72 per 4 weeks more than last year on top of my work pension increase.

xylophone

Your state pension is £9345 a year.

Your BP pension is  £6860 a year.

Total taxable income £16,205.

Personal Allowance £12,570.

£16,205 - £12,570 = £3635.

20% x £3635 = £727 tax due.

The tax has to be taken from your occupational pension (as SP is paid gross) and the tax code on the pension reflects this.

With regard to your SP, your "starting amount" was calculated at 6/4/16.
It was the higher of

Old Rules

NI qualifying years/30 (max) x full basic SP + (Additional State Pension - Deduction for Contracting Out)

New Rules

(NI qualifying years/35 (max) x Full NSP) - Contracted Out Pension Equivalent.

You retired from paid employment in 2010 at around age 55 on grounds of ill health.

Did you not qualify for NI credits?

If you did not qualify for NI credits, or even if you did but still do not receive full NSP,  have you considered whether voluntary contributions would improve your state pension?

https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

pothole65

Thanks to all who answered my query with helpful advice it is much appreciated.