DWP State Pension increase next April 'cancelled' for millions of pensioners

A woman checks her bills
-Credit: (Image: Getty)


Pensioners who are expecting a jump in payments from April 2025 may find this is completely offset as they lose access to a crucial financial boost. Latest inflation figures suggest State Pension payments will likely rise by 4.1% in less than six months' time, in line with the average earnings growth component of the triple lock.

This would see the full new State Pension increase from £221.20 per week to £230.30 per week, a yearly rise of £473.60. The full basic State Pension would rise from £169.50 per week to £176.45 per week, providing an annual boost of £361.40.

However, many pensioners receive less than the full amount and with millions set to lose access to the Winter Fuel Payment this year, worth between £200 and £300, many people will effectively see no pay rise at all. Greg Marsh, CEO of AI money-saving tool Nous.co, commented: "For millions of pensioners the increase will be almost entirely cancelled out by the loss of their Winter Fuel Payment.

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"This will leave significant numbers struggling to afford their bills just as we head into winter, so it’s crucial that people make savings where they can." He encouraged pensioners to explore whether they could save on their energy bills by switching providers, adding: "The cheapest way to pay for energy is by direct debit – households who pay by cash or cheque currently pay around £100 per year more than direct debit customers. Most households aren’t on a fixed deal right now and can save by switching providers with services like Nous. co.

"The majority can save the better part of £150 on their energy bills." Another expert warned that some pensioners may find their increase is even lower than the 4.1% rise.

Steven Cameron, pensions director at Aegon, explained: "A little-known rule is that any earnings-related element of the state pension, relating to the pre-April 2016 rules, and top ups, are only increased in line with the rate of inflation and not the triple lock. For millions of pensioners the increase will be almost entirely cancelled out by the loss of their Winter Fuel Payment.

"Therefore, some may find their overall state pension increase lags behind the 4.1 percent figure." Britons face rising living costs over the coming months after the energy price cap increase from the start of October, with average bills rising 10 percent to £1,717 a year.

Another worrying trend is the rising cost of food, with the rate of food inflation rising to 1.8 percent in the latest figures, meaning prices at the supermarket could go up. However, the Winter Fuel Payment is still going out to hundreds of thousands of pensioners, as those on Pension Credit will still qualify for the support.

The Government is urging people to apply for the benefit, which typically boosts a claimant's income by £4,000 a year.