The Department for Work and Pensions (DWP) has confirmed that state pension payments in the UK will increase from April 2025, offering additional financial support to millions of retirees.
The adjustment, reported by Manchester Evening News, is part of the triple lock mechanism, which guarantees that pensions rise in line with the highest of inflation, earnings growth, or 2.5%.
With an extra £6.9 billion allocated to fund state pensions and benefits, many pensioners could see their annual income increase by more than £400, depending on their National Insurance (NI) record and eligibility criteria.
How the pension increase is calculated
The triple lock system was introduced to protect pensioners from losing purchasing power due to the rising cost of living. Under this mechanism, state pensions increase annually by the highest of the following:
- Inflation (measured by the Consumer Price Index in September of the previous year)
- Average earnings growth
- A minimum of 2.5%
For the 2025/26 financial year, pensions will rise by 4.1%, reflecting the growth in average earnings. Meanwhile, most other benefits will increase by 1.7%, in line with inflation.
New State Pension Payment Rates From April 2025
The increase will apply to both the New State Pension and the Basic State Pension, with the following revised rates:
Full New State Pension
- Weekly payment: £230.25 (up from £221.20)
- Four-weekly payment: £921 (up from £884.80)
- Annual amount: £11,973 (up from £11,502)
Full Basic State Pension
- Weekly payment: £176.45 (up from £169.50)
- Four-weekly payment: £705.80 (up from £678)
- Annual amount: £9,175 (up from £8,814)
The actual amount a person receives depends on their National Insurance (NI) record. Those who have contributed for at least 30 years qualify for the full Basic State Pension, while those eligible for the New State Pension typically need 35 qualifying years.
Pension Credit Increases
The government has also announced an increase in Pension Credit, aimed at providing additional support to pensioners on lower incomes. The standard minimum guarantee in Pension Credit will rise by 4.1%, resulting in:
- £227.10 per week for single pensioners (up from £218.15)
- £346.60 per week for couples (up from £332.95)
Government Commitment to the Triple Lock
In a statement to the House of Commons, Work and Pensions Minister Sir Stephen Timms reaffirmed the government’s commitment to the triple lock, ensuring pensions will continue to rise in line with the highest economic indicator.
“The Government’s commitment to the triple lock means that the basic and full rate of the new state pension will be uprated by the highest of the growth in earnings, prices, or 2.5%. This will mean 4.1% for 2025/26. From April this year, the basic state pension will increase from £169.50 per week to £176.45, and the full rate of the new state pension will increase from £221.20 to £230.25.”
His remark highlights ongoing political debates over the future of the triple lock policy, with some questioning whether it will remain in place in the long term.
