Older state pensioners across the UK are set to receive up to £3,047.20 less per year in State Pension payments from the Department for Work and Pensions (DWP) in the 2027 to 2028 tax year compared to younger retirees. The Government increases State Pension rates at the start of each new tax year, with the increase determined by the triple lock—a guarantee that rates will rise by the highest of three factors: the consumer price index (CPI) measure of inflation (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%.
Triple Lock Set to Deliver 3.9% Rise
While Prime Minister Andy Burnham has announced plans to scrap the triple lock in 2030 in favour of a new "double lock" system, the current method of calculating State Pension rises remains in place until then. As such, the State Pension is on course to rise by 3.9% from April 6, 2027, now that the final piece of the triple lock puzzle is known.
The Office for National Statistics (ONS) announced on October 21 that the rate of CPI inflation was 3.5% in September, accelerating from 3.1% in August, but this doesn't beat the 3.9% wage growth figure that has already been published.
New State Pension Rates from April 2027
With a 3.9% boost from next April, the full new State Pension would rise to £250.70 per week, up from £241.30 currently. It means someone eligible for the full amount would get £13,036.40 in State Pension payments per year, amounting to an annual boost of £488.80.
But pensioners on the old basic State Pension are paid at a lower rate. A 3.9% boost would take the full weekly rate to £192.10 per week, up from £184.90 currently, so pensioners entitled to the maximum amount would get £9,989.20 in State Pension payments per year—an annual boost of £374.40 on current rates.
Who Gets the Basic State Pension
The maximum basic State Pension amounts to £3,047.20 less from the DWP per year compared to younger retirees who get the full new State Pension. You get the basic State Pension if you're a man born before April 6, 1951, or a woman born before April 6, 1953, but anyone born after these dates gets the new State Pension instead, which is paid at a higher rate.
According to figures published by UK Parliament in September, in the quarter ending March 2026, around 7.9 million people (59%) were receiving the basic State Pension in the UK, while around 5.4 million (41%) were receiving the new State Pension. As the vast majority of pensioners get the old basic State Pension, it means around 7.9 million people are set to miss out on up to £3,047.20 annually under the uplifted rates from April 2027.
National Insurance Requirements
Age isn't the only factor in determining which State Pension you get, with everyone who is eligible for the basic State Pension having already reached State Pension age, as how much money you get also depends on your National Insurance record. You need to have a certain number of qualifying years to get the full State Pension amounts.
To get the full basic State Pension, a man born between 1945 and 1951 usually requires 30 qualifying National Insurance years, while men born before 1945 require 44 qualifying years. For women, you'll need 30 qualifying years if you were born between 1950 and 1953, or 39 qualifying years if you were born before 1950.
Additional State Pension Schemes
Some older pensioners also qualify for an "additional" State Pension which can give them extra amounts on top of the basic rate. Additional Pension is the umbrella term for a range of extra pension schemes which older pensioners were able to make use of before the 'old' pension was phased out and replaced in 2016.
This included the Second State Pension and the State Earnings-Related Pension Scheme (SERPS) which operated from 1978 until 2002 and was designed to give pensioners extra money on top of the basic State Pension based on earnings and how many years they contributed.
This has now been replaced by the new State Pension and people who were in SERPS before April 2002 continue to receive benefits as part of their State Pension, while those who were contracted out can access the money in a separate workplace or private pension.
UK Parliament explains: "The old State Pension has two tiers: The basic State Pension (BSP) – a contributory flat-rate benefit to which people built entitlement on the basis of their national insurance (NI) record. The additional State Pension – this depended on the earnings or deemed earnings during a person's working life since 1978. People built up entitlement through the State Earnings Related Pension Scheme (SERPS) between 1978 and 2002, and the State Second Pension (S2P) from 2002 onwards. It was possible to contract out into a private pension scheme that met set requirements, in return for which the employee (and their employer) paid a lower rate of NI."
Although the schemes can no longer be claimed by state pensioners retiring now, those who took part in them can still get additional pension payments every week. According to analysis by Money Mail in 2024, some older retirees in their 80s and 90s can receive up to £20,176 annually, which is much higher than the new State Pension rate.
