State Pension and Pension Credit payments will increase by 3.9% from April 2027, following changes confirmed in the Autumn Budget. The rise, linked to average wage growth, will add £488.80 a year to the full new State Pension.
Triple Lock Drives the Increase
The Chancellor set out the Government's spending and borrowing plans for the year ahead on October 28, delivering a Budget he said will give households "breathing space from rising costs". Among the announcements, which included energy bill help and higher wages, the Chancellor confirmed that State Pension rates will rise by 3.9% from next April.
The boost comes thanks to the triple lock guarantee, which determines State Pension rises for each new tax year based on whichever is the highest out of three factors. This year, average wage growth between May and July the previous year was the highest measure at 3.9%, sitting above inflation at 3.5% and the minimum 2.5% increase.
Basic State Pension Increase
Men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension and will see their pensions increase by 3.9% from April 6, 2027. The uplift will take the full rate from £184.90 per week to £192.10 per week in the 2027 to 2028 tax year - a weekly increase of £7.20.
This increase will give pensioners entitled to the maximum amount a total of £9,989.20 in basic State Pension payments per year - a boost of £374.40 annually on current rates. To receive the full amount, claimants need a certain number of qualifying years of National Insurance, which for a man is usually 30 qualifying years if born between 1945 and 1951, or 44 qualifying years if born before 1945. For women, 30 qualifying years are needed if born between 1950 and 1953, or 39 qualifying years if born before 1950. Those with fewer qualifying years will receive less than £192.10 per week from April 2027.
New State Pension and Pension Credit
The 3.9% increase will take the full new State Pension from £241.30 per week to £250.70 per week in the 2027 to 2028 tax year - a weekly increase of £9.40. Over a full year, this amounts to a maximum of £13,036.40 in State Pension payments for pensioners entitled to the full rate, giving claimants an extra £488.80 annually. This rise applies to new state pensioners who reached State Pension age from April 6, 2016, when the qualifying age was set at 63 to 65. The maximum amount usually requires 35 qualifying years of National Insurance.
Pat McFadden, Secretary of State for Work and Pensions, said: "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."
"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 standard minimum guarantee for Pension Credit, which can be claimed by people who have reached State Pension age and are on a low income, will also rise by 3.9% from April. In the 2027 to 2028 tax year, the rate will rise from £238 per week to £247.30 for single pensioners, which amounts to a weekly boost of £9.30, or £483.60 more per year if you get the full amount. For pensioner couples, the joint weekly rate is rising from £363.25 per week to £377.40 from April, giving couples up to £14.15 more per week, or a maximum of £735.80 extra annually.
