Help needed for old and slow pensioner.

RonBargie

I keep reading about the new state pension, which I currently get, and every time I do a simple calculation the numbers don't align. For example my current pension is £230.25pw, so if I divide this figure by 7 then multiply it by 365 I get £12,005.89, but the DWP says it comes to £11,973. Likewise, the pension for 2026/2027 is £241.30pw and if I divide this by 7 then multiply it by 365 it comes to £12,582.07, (which is over the personal allowance of £12,570), but the DWP says the yearly figure is £12,547.60, (which is under the personal allowance). Can somebody please tell me what I am doing wrong with my calculation as it is starting to annoy me! Thank you.

JGB1955

Your pension isn't calculated on a daily basis but a weekly one.  52 x £230.25 = £11,973.

badmemory

One year you will get 53 x the weekly one but if you are lucky they only tax you on the 52 x.

IOWJJBTM2025

I sometimes get confused about years, weeks and says.
In a year you will get 52 weekly payments.
52x7 = 364.
Therefore if you use 364 days per year instead of 365 your sums will work.

kempiejon

DWP use the handy ~7.0192 days in a week

molerat

Also for tax purposes and what you are due in the year your pension is 51 weeks at the new rate plus one at the old so for 25/26 it will be £11963.95 and 26/27 £12536.55.