State pensioners across the UK will see a welcome increase in their payments next year. The Department for Work and Pensions (DWP) has confirmed that State Pensions will rise by 4.1% in April 2025, giving pensioners an extra £470 annually.
This increase is part of the government’s commitment to the Triple Lock, ensuring pensions keep pace with inflation and wage growth.
Pension Increase Details
Chancellor Rachel Reeves announced the 4.1% State Pension increase during the autumn Budget. This uplift applies to both the New State Pension and the Old (Basic) State Pension, benefiting over 12 million retirees across the UK.
Without this rise, pensions would have only increased by 1.7%, costing pensioners around £2,725 less over their retirement.
New State Pension Rates
The New State Pension applies to those who reached pension age after April 6, 2016. From April 2025, the rates will be:
| Pension Type | Current Weekly Rate | New Weekly Rate (April 2025) |
|---|---|---|
| Full New State Pension | £221.20 | £230.25 |
This means retirees on the full New State Pension will receive an additional £470 per year.
Old State Pension Rates
The Old State Pension applies to those who reached retirement age before April 6, 2016. The new rates for April 2025 are:
| Pension Type | Current Weekly Rate | New Weekly Rate (April 2025) |
|---|---|---|
| Category A or B Basic Pension | £169.50 | £176.45 |
| Category B (Lower) – Spouse/Civil Partner’s Insurance | £101.55 | £105.70 |
| Category C or D – Non-Contributory | £101.55 | £105.70 |
Pension Credit Increase
For those on Pension Credit, the Standard Minimum Guarantee is also rising by 4.1%. This will help low-income pensioners receive additional support. The new rates are:
| Benefit Type | Current Weekly Rate | New Weekly Rate (April 2025) |
|---|---|---|
| Single Pensioner | £218.15 | £227.10 |
| Couple | £332.95 | £346.60 |
| Additional Severe Disability (Single) | £81.50 | £82.90 |
| Additional Severe Disability (Couple – One Qualifies) | £81.50 | £82.90 |
| Additional Severe Disability (Couple – Both Qualify) | £163.00 | £165.80 |
Why Is the State Pension Increasing?
The Triple Lock policy ensures that the State Pension increases each year based on the highest of:
- Inflation rate (measured by the Consumer Price Index)
- Average wage growth
- 2.5% minimum increase
For 2025, wage growth was the highest factor at 4.1%, meaning pensions will rise accordingly. This policy helps pensioners maintain their spending power despite rising costs.
What Should Pensioners Do?
If you are already receiving the State Pension, you do not need to take any action. The new rates will be applied automatically to your payments starting from April 2025.
For more details or to check eligibility for Pension Credit, visit GOV.UK or contact the Pension Service.
The 4.1% increase in the State Pension will provide much-needed financial relief for retirees, especially those on fixed incomes.
While this rise ensures pensioners receive a fair boost, future increases will depend on government policies and economic conditions. Stay informed about any changes to your pension by checking official updates from the DWP.
