state pension payment cycle

[Deleted User]

I have done it and I`ll be on weekly pension soon. It only took a phone call and I know that I would rather have the interest, which must add up over 20-40 years

EdInvestor

getting-sorted-sarah wrote: »

Yes, it does. There is a charge for each BACS transfer

Perhaps you are confusing BACs transfers with CHAPs transfers. There is a fee for CHAPs payments, but BACs transfers are free

Biggles

EdInvestor wrote: »

Perhaps you are confusing BACs transfers with CHAPs transfers. There is a fee for CHAPs payments, but BACs transfers are free

There is certainly a charge for BACS transfers when they come as part of business banking (eg paying salaries or, in this case, benefits), just as there are charges for using cheques or paying money in.

The charge for a BACS transfer is a tiny sum, however, and I don't think there has ever been a charge for BACS when it comes as part of personal online banking.

getting-sorted-sarah

EdInvestor wrote: »

Perhaps you are confusing BACs transfers with CHAPs transfers. There is a fee for CHAPs payments, but BACs transfers are free

Fine, whatever you call it, that is the reason - expense to the DWP.

EdInvestor

Biggles wrote: »

There is certainly a charge for BACS transfers when they come as part of business banking ...The charge for a BACS transfer is a tiny sum, however...

Indeed so, this commercial organisation charges as little as 1p per payment for admin of BACs payroll transfers:

http://www.eagleconsulting.co.uk/bacs.html

A Government department with a huge volume of payments like the DWP is likely to run its own system and thus pay nothing. But even if it did pay a commercial fee, the charge would be 4p per pensioner, whereas by paying every 4 weekly, the DWP earns around 1.60 in interest per full state pension paid in arrears.

Be_Happy

Thanks for this info. It doesn't apply to me as I've chosen to defer my pension, but husband has phoned up to change his to weekly.

One query though, is the weekly pension paid on a particular day of the week. He was told his 4-weekly pension due tomorrow will go through as usual and from Monday he will be paid weekly. Does his pension day change from a Friday to a Monday and is this paid in advance or in arrears.

Anyone know

chesky369

weekly pensions are paid in advance (that's why we get them this way) and are there on a Monday morning, when you log into your account.

iris

actually if you log on to your account on a Sunday about 12.30 pm you will find your pension is already there:j Well with Lloyds TSB it is.

littleowl

Like margaretclare my first reaction to changing to weekly payments was antagonistic but after some thought I realised the advantages. 'Phoned the Pension Service this morning and they couldn't have been more helpful, so weekly payments for me will start a week on Monday.
Thanks to the OP and other contributers for bringing this to attention.

roddydogs

If you get your pension weekly, its paid on the Monday AFTER your birthday-How is this deemed to be "in Advance?" yes, its better than waiting a month, but its not "in Advance"