Older state pensioners are set to receive a combined cash boost of up to £794 a year from next April, as both the basic state pension and the additional state pension (AP) are increased.
The basic state pension, currently paid at £184.90 per week for an older retiree with a full National Insurance record, will rise by 3.9% under the triple lock to an estimated £192.10 per week. This amounts to an extra £374 per year.
Additional State Pension Increase
The additional state pension is an extra payment on top of the basic state pension for those who did not contract out through work. It was previously known as SERPS or the Second State Pension. According to the Department for Work and Pensions (DWP), eligibility applies to men born before 6 April 1951 and women born before 6 April 1953.
The DWP states: “You get the additional state pension automatically if you’re eligible for it, unless you’ve contracted out of it. The additional state pension is paid with your basic state pension. There is no fixed amount for the additional state pension.”
Budget Confirms 3.5% Rise
Chancellor John Healey confirmed in last week's Budget that the additional state pension will increase by 3.5%, in line with the consumer prices index for the year to September 2026. This takes effect from April.
The UK Parliament website confirmed: “Other state pension and benefit rates covered by my statutory review will be increased by 3.5%, in line with the increase in the consumer prices index in the year to September 2026. This includes most working-age benefits and other benefits for people below state pension age; benefits to help with additional needs arising from disability; statutory payments including statutory sick pay and statutory maternity pay; and additional state pension.”
With the 3.5% increase applied over 52 weeks, a pensioner receiving the maximum AP payment could get an extra £419.64 per year from April 2027 to April 2028, with a new maximum weekly payment of £238.
Combined Total Reaches £794
Consumer magazine Which? explains that before 2002, contributions to the additional state pension were only possible for employees. Under the state second pension scheme, which ran from 2002 to 2016, contributions could be made through National Insurance for employees earning at least £113 a week, carers of children under 12 claiming child benefit, those claiming carer's credit, and those claiming certain disability-related benefits.
There is no fixed amount for the additional state pension, as the value depends on years of National Insurance contributions, earnings, and whether the individual contracted out. For an older state pensioner who has maximised both their National Insurance contributions and an AP scheme, the combined increase totals £794 extra per year.
