From April 6, a number of government rates will be increasing
The start of the new financial year on April 6 will bring several major changes for those receiving state pension payments. Pensions Minister Torsten Bell emphasised the Government’s objective to provide ‘financial security and dignity’ for pensioners through these adjustments and measures.
Responding to a Parliamentary question about the DWP’s approach to addressing pensioner poverty, the Labour MP said: “From April 6, both the basic and new State Pensions will increase by 4.8 per cent, benefitting over 12 million pensioners by up to £575. Our commitment to maintain the Triple Lock throughout this Parliament – helping to raise the value of the State Pension over time – will see pensioners’ yearly incomes rising by up to £2,100.”
The Triple Lock is the mechanism that increases state pension rates each year by whichever is greatest of three measures:
- Wage growth
- Inflation
- 2.5 per cent
This year, state pension rates are rising by 4.8 per cent in line with UK wage growth. This will increase the full new state pension weekly rate from £230.25 to £241.30, while the full basic state pension will rise from £176.45 to £184.90 per week.
The standard minimum guarantee for Pension Credit will likewise increase by 4.8 per cent, raising payments to £238 weekly for a single pensioner and £363.25 weekly for a couple. The minister characterised this benefit as a “vital financial safety net”.
He emphasised: “Receipt of Pension Credit also opens the door to a whole range of additional support, which is why maximising Pension Credit take-up is a key departmental priority. We have been running the biggest campaign to date encouraging pensioners and their families to check their eligibility and to apply.”
The MP also highlighted help accessible through Housing Benefit and the recently established Crisis and Resilience Fund, created to assist pensioners and others experiencing financial difficulties.
As of February 2025, 4.7 million people receive the new state pension. However, only approximately half obtain the full sum. To be eligible for the full new state pension, a minimum of 35 qualifying years is necessary.
These are years in which you contributed National Insurance payments, bought voluntary contributions, or were awarded National Insurance credits. If your National Insurance record contains fewer than 35 years but exceeds 10, you’ll be entitled to a proportion of the state pension rate.
As of May 2024, the average weekly state pension payment ranged from £205 to £209.49 for women and men respectively. In comparison, the full new state pension stands at £230.25 per week prior to the April 6 increase.
Those receiving the full new state pension face an additional potential worry, as the April 6 rise will bring their annual income dangerously close to the personal allowance — the point at which earnings become liable for income tax.
Chancellor Rachel Reeves has pledged that pensioners whose sole source of income is the state pension will not be subject to income tax, even should it surpass the threshold next April. However, earning just over £50 a year from other sources such as savings or employment could be enough to trigger a demand from HMRC.
