DWP confirms State Pension increase from April with new rates announced
New data from the Department for Work and Pensions (DWP) show that 12.9 million individuals are currently claiming the State Pension. Of these, 4.1 million are on the New State Pension (post-April 2016), while 8.8 million are receiving the Basic (or Old) State Pension (pre-April 2016).
The New and Basic State Pensions are due to increase by 4.1 per cent on April 7, under the earnings growth measure of the Triple Lock. However, additional elements, along with working age and disability benefits, will rise by 1.7 per cent under the September Consumer Price Index (CPI) inflation rate.
The DWP proposed new payment rates for the 2025/26 financial year in Parliament, which will now move forward to the next legislative stage. Those on the full New State Pension will see their weekly payments go up by £9.05 from £221.20 to £230.25, reports the Daily Record.
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Payments are typically made every four weeks, equating to an increase of £921. This uplift will result in annual payments rising by £473.60 from £11,502 to £11,973 over the 2025/26 financial year.
It's important to remember that not all of the 4.1 million people on the New State Pension receive the full amount as it is linked to National Insurance Contributions. Those on the full Basic State Pension will see their weekly payments increase by £6.95 from £169.50 to £176.45, or £705.80 every four-week payment period.
Annual payments are due to increase by £361.40, from £8,814 to £9,175.40, over the 2025/26 financial year. To estimate your future State Pension payments, you can use the online tool at GOV.UK.
The DWP has published a detailed list of updated State Pension and benefit payments for 2025/26 on its website. This includes extra elements like deferred rates, which are projected to rise by 1.7 per cent in line with the September Consumer Price Index inflation rate.
Full New State Pension
Weekly payment: £230.25 (from £221.20)
Four-weekly payment: £921 (from £884.80)
Annual amount: £11,973 (from £11,502)
Full Basic State Pension
Weekly payment: £176.45 (from £169.50)
Four-weekly payment: £705.80 (from £678)
Annual amount: £9,175 (from £8,814)
The Labour Government has pledged to uphold the Triple Lock for the duration of its term, and recent forecasts suggest the following annual increases. The confirmed increase for 2025/26 is 4.1 per cent, which was initially forecasted at four per cent, while for the following years, through to 2029/30, the increase is set at 2.5 per cent.
A recent study by Royal London showed that only about half of the individuals receiving the New State Pension last year were getting the full weekly amount, with approximately 150,000 receiving less than £100 per week. In March, the DWP will send letters to all 12.9 million State Pensioners informing them of their new payment rates and encouraging older people to check their eligibility for Pension Credit.
In terms of tax and the State Pension, the Personal Allowance will remain at £12,570 for the 2025/26 financial year. It's important to note that individuals whose only income is the State Pension will not be required to pay income tax.
However, those with extra income in addition to their State Pension may be required to pay tax. This is paid a year behind, so if the financial uplift for the year 2025/26 pushes you over the threshold, you won't receive a tax bill from HM Revenue and Customs (HMRC) until July 2026.
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