As Andy Burnham moves into Downing Street, many will be wondering what this means for their pensions. Here is a full list of the current State Pension rates and rules being taken over by the new Prime Minister.
Triple Lock Guarantee
The Triple Lock guarantees that both the New post-2016 and Basic pre-2016 State Pensions rise annually by whichever is highest: average yearly earnings growth from May to July (4.8%), the CPI inflation rate for the year to September (3.8%), or 2.5%. Additional State Pension elements and deferred State Pensions increase yearly with September's CPI figure.
The full New State Pension has already gone up by approximately £575 to £12,548 this year, which began in April. Former pensions minister Torsten Bell said: "After a lifetime of work and contribution, people deserve a decent retirement. Raising the State Pensions faster than prices, ensuring it is a pension they can rely on, is how we make that a reality for millions."
New State Pension Payment Rates 2026/27
Full New State Pension:
- Weekly: £241.30 (from £230.25)
- Four-weekly: £965.20
- Annual: £12,547
Basic State Pension Payment Rates
Full Basic State Pension:
- Weekly: £184.90 (from £176.45)
- Four-weekly: £739.60
- Annual: £9,614
Other State Pension rates:
- Category B (lower) Basic State Pension - spouse or civil partner's insurance: £110.75 (from £105.70)
- Category C or D - non-contributory: £110.75 (from £105.70)
Full details on Additional State Pension, Widows' Pension, increments and Invalidity Allowance can be found on GOV.UK.
Pension Credit Rates
- Standard minimum guarantee: Single £238.00 (from £227.10), Couple £363.25 (from £346.60)
- Additional amount for severe disability: Single £86.05 (from £82.90), Couple (one qualifies) £86.05, Couple (both qualify) £172.10 (from £165.75)
- Additional amount for carers: £48.15 (from £46.40)
State Pension and Tax
Guidance on GOV.UK states: "You pay tax if your total annual income adds up to more than your Personal Allowance." Your total income could include State Pension (Basic or New), Additional State Pension, private pension, earnings, taxable benefits, or other income such as investments, property or savings.
HMRC has announced new protocols this year to ensure that pensioners whose sole source of income is the State Pension will not be required to submit a Simple Self Assessment tax return if their payment exceeds the Personal Allowance threshold of £12,570.
