The state pension will go up by 3 % (6 April) as part of a number of changes which take effect at the start of the tax year.
In real terms this means the state pension will increase by £3.65 a week to £164.34.
The state pension is increased every year according to the “triple lock” formula which means it increased by the highest of consumer price index inflation, earnings or 2.5 per cent.
This year, the highest of these was inflation which, in September 2017 when the measure was taken, was 3 per cent.
Meanwhile the Personal Allowance is also going up to £11,850. This means basic rate taxpayers will take home £1,075 more in their wage packet than they did in 2010/11.
Those aged 25 and over will be earning more, as the National Living Wage is to increase to £7.83 per hour. This increase applies to people in this age bracket as long as they are not in the first year of an apprenticeship. Those under the age of 25 and apprentices will earn more too, due to increases in the Minimum Wage.
Graduates will see the earnings threshold at which they begin to pay back their student loan rise to £25,000. HM Revenue & Customs said the threshold would continue to increase in line with changes to average earnings, to support those newly entering the workplace.
The nation’s drivers will receive a boost too, as fuel duty is set to remain the same for the eighth year running, at 57.95p per litre. HMRC said this will save households and businesses £850m a year, which works out at £160 for the average driver.