The Department for Work and Pensions (DWP) has confirmed that new state pensioners will receive a boosted weekly rate of £250.70 from next April, up from the current £241.30.
The increase, detailed in the DWP's new benefits figures for 2027-28, follows the government's commitment to keep the triple lock for at least three more years, as announced in the Autumn Budget. New state pensioners are those who reached state pension age in or after April 2016, when the age was 63 for women and 65 for men, meaning they would now not be older than 76.
Annual boost for full National Insurance record holders
The boost is worth exactly £488.80 per year extra for a state pensioner who took their state pension on or after April 6, 2016, and who has a full National Insurance record of roughly 35 years. The triple lock is the mechanism by which pensions are increased by the highest of three metrics: inflation, wage growth, or a flat 2.5%.
Older state pensioners have also been given the same triple lock, but their basic payments are lower, so the cash boost is not as high. Those with a lower or incomplete National Insurance record will see a lower weekly amount, as payouts depend on individual circumstances.
Statutory review and tax changes
Delivering a statutory review for Parliament following the Budget, Pat McFadden wrote: "I am pleased to announce that the basic and full rate of the new state pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026."
He added: "This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. From April, the full annual rate of the new state pension will increase by around £490. The full annual rate of the basic state pension will increase by around £375."
The boosts represent the maximum amount that the state pension will increase for a state pensioner with a full National Insurance record.
At the same time, Chancellor John Healey has announced the new Pensions Tax Allowance, a policy first announced by Rachel Reeves. It means that state pensioners receiving the full new state pension will not pay tax on it, despite the amount hitting £13,036 per year, which would exceed the £12,570 Personal Allowance tax threshold. Any income under £13,037 will be tax free, including the pension but also savings, property income and salary.
