DWP £176.45 for State pensioners born before 1951: From April 6, 2025, the state pension is rising—bringing welcome news for millions of retirees. But there’s also growing confusion and concern about why older pensioners receive less than younger ones in their weekly payments.
If you’ve noticed this and are wondering whether it’s fair or permanent, you’re not alone. Here’s an easy-to-understand breakdown of why older and newer retirees are paid differently, what it means in practice, and how these differences are often balanced out.
State Pension in 2025: A Quick Breakdown
| Pension Type | Weekly Rate (2025) | Annual Rate |
|---|---|---|
| New State Pension | £230.30 | £11,975 |
| Basic State Pension | £176.45 | £9,175 |
The difference between the two annual rates is £2,800, but that doesn’t mean older pensioners are always worse off.
Who Gets Which Pension?
- New State Pension: For men born on or after 6 April 1951 and women born on or after 6 April 1953, retiring after April 2016.
- Basic State Pension: For men born before 6 April 1951 and women born before 6 April 1953, who retired before April 2016.
Why Are Older Pensioners Paid Less?
The basic state pension system was in place for decades before it was replaced in 2016. It was often supplemented with extra payments, including:
- Additional State Pension (also known as SERPS or State Second Pension)
- Graduated Retirement Benefit
- National Insurance contribution-based top-ups
So while the basic rate is lower, many older pensioners receive these top-ups, which can make their total pension similar or even higher than those on the new state pension.
Why the System Changed in 2016
The UK government introduced the new state pension to make things simpler. Instead of a mix of payments, everyone now gets a flat weekly amount based on their National Insurance contributions.
However, this has led to confusion and complaints, especially as many older pensioners assume they are being left behind—when in reality, they may still get more overall.
Are Older Pensioners Missing Out?
Not always. Here’s why:
- Many receive more than £176.45 per week when top-ups are included.
- Some receive Pension Credit, especially if on a low income.
- Benefits like Winter Fuel Payments, Attendance Allowance, and free prescriptions help support older groups.
But, some did miss out because they didn’t qualify for the additional state pension or had gaps in NI contributions, particularly women with caring responsibilities. This is why women tend to benefit more under the new system, according to experts like former pensions minister Steve Webb.
What the Government Says
Ministers say the “headline figures” have caused a misunderstanding. On average:
- Men get slightly less under the new system
- Women get slightly more, due to fairer NI credit rules
The goal was to create a simpler, fairer system going forward, especially for younger generations.
Will Everyone Eventually Get the New State Pension?
Yes—but only future retirees will receive the full new state pension. Those who retired before 2016 will remain on the old system permanently.
There are no plans to merge everyone into the same pension type, as it would require major structural and financial changes.
| Factor | Older Pensioners | Newer Pensioners |
|---|---|---|
| Type | Basic State Pension + top-ups | New Full State Pension |
| Weekly Payment (base) | £176.45 | £230.30 |
| Additional Elements | Often includes SERPS, GRB, NI-based top-ups | Usually no top-ups |
| Start Date | Retired before April 6, 2016 | Retired after April 6, 2016 |
| Who Benefits More? | Some men under old system; women under new one | Generally women benefit more from new system |
FAQ’s
Why do older pensioners get less state pension than younger ones?
Older pensioners receive the basic state pension, which is lower, but many get top-ups like SERPS or Pension Credit, making their total income similar or higher.
What is the difference between the basic and new state pension?
The basic state pension is £176.45 a week, while the new state pension is £230.30 a week. However, the basic pension can include extras.
Can older pensioners switch to the new state pension?
No. Those who retired before April 6, 2016, remain on the old system. Only new retirees qualify for the new state pension.
Do women benefit more from the new state pension system?
Yes. Women often receive more under the new system due to improved rules for NI credits for carers and lower gaps in contributions.
Will the state pension system be merged in future?
There are currently no plans to merge the systems. Each remains separate, depending on when you reached state pension age.
