The state pension will rise from £11,502.40 to £11,975 per year – a £473 boost.
The Department for Work and Pensions is set to boost state pension payments by hundreds of pounds in 44 days. The state pension will rise from £11,502.40 to £11,975 per year – a £473 boost.
This means the full rate of the new state pension will go up from £221.20 a week to £230.27. For the basic part of the old state pension, the rate will increase from £169.50 to £176.45. The triple lock ensures the State Pension rises in line with the highest of wages for May to July, September’s inflation figure, or 2.5%.
This year, payments will rise by 4.1% in line with wage growth in the three months to July last year. This will take the full new State Pension to £11,973 a year, up by £473 from just over £11,502, with a weekly rise from £221.20 to £230.31.
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Meanwhile, older pensioners who retired before April 2016 will get £9,175.61 annually, up from £8,812.96, with a weekly rise from £169.48 to £176.45. The additional state pension is an earnings-related entitlement consisting of the State Second Pension (S2P) or its predecessor, the State Earnings-Related Pension Scheme (SERPS).
This is not triple-locked and so will rise in line with the Consumer Prices Index (CPI) inflation rate of 1.7%. Aside from the state pension, Pension Credit is the main means-tested benefit for pensioners.
For people who reached state pension age before 6 April 2016, it has two elements – Guarantee Credit and Savings Credit. It is for pensioners on very low incomes will also increase by 4.1% from April 2025.
Currently, single people get their income topped up to £218.15 per week, while couples will be boosted to £332.95. From April 2025, this will rise to £227.10 and £346.60 respectively. That means single retirees on Pension Credit will be £465.40 a year better off, while couples will get an extra £709.80.
People who retired before April 6, 2016 and receive savings credit will also get a boost.