Starting from Sunday, April 6, 2025, state pensioners across the UK will see an increase in their weekly benefits. The new State Pension will rise by 4.1%, bringing the full weekly payment to £230.25, up from £221.20. This increase is part of the government’s annual uprating of state pensions, which is calculated using the ‘triple lock’ system. The system ensures pension rates are adjusted according to inflation (using the Consumer Price Index (CPI)), average earnings growth, or a minimum of 2.5%—whichever is highest, as reported by Express.co.uk.
How the Triple Lock System Works
Each year, the UK government uses the triple lock to determine how much the State Pension will increase. The triple lock looks at three factors:
- Inflation as measured by the Consumer Price Index (CPI) for the previous September.
- Average wage growth between May and July of the previous year.
- A guaranteed minimum increase of 2.5%.
The highest of these three figures becomes the percentage increase applied to the State Pension for the following tax year. For the 2025/26 tax year, the increase has been set at 4.1%, which is based on the rise in average weekly earnings from May to July 2024.
Increased Weekly Payments for Pensioners
As a result of this increase, pensioners receiving the new State Pension will see their weekly payments rise to £230.25, up from £221.20. This will add an additional £470 to their annual pension income. Over the course of the year, recipients of the new State Pension will receive a total of £11,973.
This rise is especially significant when compared to the basic State Pension, which will increase from £169.50 to £176.45 per week. Those on the basic State Pension will see an extra £360 annually, totaling £9,178.40 in annual payments.
The Difference Between New and Basic State Pension
The new State Pension applies to those who reached State Pension age after April 6, 2016. Those who were born on or after April 6, 1951 (men) or April 6, 1953 (women) will qualify for the new State Pension. For those who reached the State Pension age before this date, they are on the basic State Pension.
The new State Pension is higher than the basic State Pension, reflecting changes in how the pension is calculated. In particular, the new system is designed to be clearer and fairer for those who have had inconsistent or irregular work histories throughout their lives. The new system is based on the number of qualifying years you have paid National Insurance contributions, ensuring that those who have worked and contributed to the system over their lifetime get a higher benefit.
Increased Financial Security for Pensioners
The 4.1% increase to the new and basic State Pensions means a total annual increase of £470 for those on the new system, and £360 for those on the basic system. This is part of the government’s ongoing effort to ensure that pensioners are not left behind in the face of inflation and rising living costs.
The government’s decision to uphold the triple lock system for pensions provides a level of security to those who are retired and dependent on their state pension as their primary source of income. This increase comes at a crucial time, with many pensioners facing rising costs for everyday living expenses, including food, energy, and transport.
More Than 12 Million Pensioners to Benefit
Over 12 million pensioners across the UK will benefit from these increases, which come into effect on April 6, 2025. The increase to the state pension will provide financial relief to many retirees who rely on their pensions to cover essential living costs.
The new State Pension will continue to support individuals who have contributed to National Insurance for at least 10 years. Those who have worked more than the minimum will receive a higher amount, up to the full £230.25 per week.
