Older state pensioners will not receive the full £575 boost from the April 2026 triple lock increase, as their payments start from a much lower base than new state pensioners.
The triple lock requires the Department for Work and Pensions (DWP) to raise state pension payments each year by the highest of wage growth, inflation, or 2.5%. This year, wage growth of 4.8% was used, rather than inflation at 3.8%.
New pensioners gain £575
New state pensioners with a full qualifying National Insurance record received a confirmed 4.8% increase, raising their weekly payment from £230.25 to £241.30, an annual boost of £575. The rise for 2027 is not yet confirmed but is currently on track to be another £514.
Older state pensioners, who retired before 2016, are only eligible for the old basic state pension. Even with a full National Insurance record, they receive £184.90 per week, or £439.40 extra per year this year.
Widening gap
This means older state pensioners received £136 less added to their annual state pension than new pensioners, and the gap will remain. For 2026-27, a new state pensioner will receive £12,548 per year, while an older state pensioner will get £9,615, a difference of £2,933 per year.
Next year, a similar pattern will emerge, as the old state pension is only expected to increase to about £192.50 if current calculations remain in place.
Pension Credit and tax threshold
Older state pensioners can use Pension Credit to top up some of the difference, but only if they do not have other savings or income, as Pension Credit is means tested, whereas the state pension is not.
New state pensioners with no other income will be very close to the Income Tax threshold. Sir Steve Webb, of pension consultants firm LCP and former pensions minister, said the full new state pension is now “creeping ever closer to the frozen personal tax allowance.” In 2026, it will be worth just £22.40 less than the personal allowance, and will definitely exceed it from 2027.
He added: “It is already the case that nearly three quarters of all pensioners pay income tax, and the ongoing freeze in tax thresholds coupled with steady rises in the pension will drag more and more into the tax net.”
