State and private pensions have gone up, but I'm worse off

Marcon

mybestattempt said:

Pat13ricia said:

Hi, 
I have received my State Pension increase and my private pensions increase. I am now £24 worse off, every month.  I don't get the full State Pension, because of "contracting out". What is the point in working hard, making provisions for the future, to then find you are worse off???

This situation may have arisen because the annual increases in state pension and possibly private pension (both being paid in arrears) were not fully included in the payments received in April, the first month of the new tax year, but the tax code operated against the private pension has changed to reflect the full annual increase in state pension. 

So, although there has been an increase in pensions paid in April because of the new tax code more tax was deducted and this has resulted in a reduction in net income in April.

However, there should be an increase in net income in May when the new rates of both pensions are paid in full.

Ahhh.....I hear the sound of a nail being neatly smacked on the head! I do hope OP comes back to read this, which looks spot on.