The UK’s State Pension payment rates have undergone their annual uprating, which took effect on April 7, 2025. This yearly adjustment is designed to reflect inflation and the rising cost of living. As part of this update, both the New and Basic State Pensions saw a 4.1% increase. This annual uprating impacts millions of pensioners across the country.
While the uprating is automatically applied to payments, many recipients are still waiting for the confirmation letter from the Department for Work and Pensions (DWP). According to Daily Record, some pensioners have expressed concerns about delays in receiving this important correspondence.
What is the State Pension Uprating?
The uprating of State Pension payments is an annual adjustment aimed at reflecting changes in the cost of living. This adjustment is based on inflation, and for the 2025/26 period, the increase is 4.1%.
The uprating applies not just to State Pension payments but also to various benefits managed by the Department for Work and Pensions (DWP), Social Security Scotland, and HM Revenue and Customs (HMRC).
The DWP, along with Scottish Government agencies, sends letters to all claimants each year, advising them of their new payment rates. These letters, which are meant for record-keeping purposes, do not affect payment amounts, as the uprating itself is applied automatically.
Delays in Receiving the Uprating Letter
Several people, particularly in the Daily Record Money Saving Facebook group, have raised concerns about not receiving their uprating letters yet.
While Social Security Scotland sent out letters to people receiving devolved benefits last month, the DWP’s letters are still being distributed. With approximately 13 million people of State Pension age in Great Britain, it’s important to remember that not everyone will receive their letter immediately.
If you haven’t received yours yet, it should arrive before the end of April. If not, ensure that the DWP has your correct contact details, particularly if you have changed address since last year’s uprating.
If you are unsure about the status of your uprating letter, you can contact the Pension Service at 0800 731 0469.
New State Pension Payment Rates
For the financial year 2025/26, the following payment rates have been set:
- 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)
In addition, deferred rates have increased by 1.7%.
Pension Credit: A Vital Support Option
Along with uprating details, the DWP’s annual letter also highlights the potential for receiving Pension Credit, which could provide a boost of up to £4,300 in the 2025/26 financial year for eligible individuals. Pension Credit is a means-tested benefit aimed at helping older individuals who have a low income.
Despite its importance, it remains under-claimed, with many people unaware that they may be eligible.
Pensions Minister Torsten Bell recently stated:
As part of the annual State Pension uprating exercise, around 11 million pensioners will receive a leaflet promoting Pension Credit along with their State Pension uprating letter.
It’s particularly crucial during the ongoing cost of living crisis, as Pension Credit can significantly increase income and provide access to additional support, such as help with housing costs and council tax.
Who Can Claim Pension Credit?
There are two types of Pension Credit:
- Guarantee Pension Credit: To qualify, you must be at least 66 years old, and your weekly income should be below a certain threshold (£227.10 for a single person, £346.60 for a couple).
- Savings Pension Credit: This is available to those who reached State Pension age before April 6, 2016, and who have some savings, such as a personal or workplace pension.
Even a small award, such as £1 per week, is enough to unlock further benefits, including help with housing costs, heating bills, and more.
Checking Eligibility for Pension Credit
Older individuals can quickly check their eligibility using the online Pension Credit calculator available on GOV.UK. Alternatively, they can contact the Pension Credit helpline at 0800 99 1234 for assistance. It’s important to check eligibility, as Pension Credit can lead to additional financial support, including assistance with heating costs through the Winter Fuel Payment or other energy-related support.
Other Benefits If You Qualify for Pension Credit
In addition to direct financial support, qualifying for Pension Credit can unlock other benefits, including:
- Housing Benefit (for renters)
- Support for Mortgage Interest (for homeowners)
- A discount on Council Tax
- A free TV license for those 75 or older
- Help with NHS dental treatment and other medical costs
- Assistance for heating costs via the Warm Home Discount Scheme and Pension Age Winter Heating Payment
How to Make a Claim
You can apply for Pension Credit up to four months before reaching State Pension age. Claims can also be made at any time after reaching State Pension age, with the possibility of backdating the claim for up to three months.
To apply, you will need your National Insurance number, details of income, savings, investments, and bank account details. For more detailed information about claiming Pension Credit, visit GOV.UK or contact the helpline.
