State pensioners will be able to access up to £1,767 in extra cash from four DWP payment increases that take effect after the new tax year begins in April 2027. The changes follow the Autumn Budget and include a triple lock boost to both types of state pension, plus increases to other pension-age benefits.
Secretary of State for Pensions Pat McFadden has confirmed to Parliament the rates at which various benefits will be boosted for pensioners from April 2027, worth a total of £1,600 extra cash for those eligible to collect all four payments. The total across the four increased payments comes to £1,767.
Triple lock increase confirmed
The state pension payments themselves will rise by 3.9% due to the triple lock. The mechanism automatically increases state pension payments in line with the highest of wage growth, inflation, or 2.5%. This year, wage growth of 3.9% is higher than the 3.5% inflation rate and the 2.5% minimum baseline.
This results in a boost of £375 per year to the basic state pension for pensioners who reached retirement age before April 6, 2016, and a boost of £490 per year to the new state pension. Both figures assume a full National Insurance record. Pensioners can only claim one type of state pension depending on their age.
Mr McFadden told Parliament: “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.”
Pension Credit and Additional Pension rises
State pensioners can also claim Pension Credit, a pension-age benefit that boosts income to almost the same level as a full new state pension for those with little or no other income, such as savings or property income. Pension Credit will rise by the same 3.9% increase from April 2027, adding up to another £483 per year maximum to the benefit.
Mr McFadden added: “The standard minimum guarantee in pension credit will also increase by 3.9% in line with the increase in average weekly earnings. From April, it will be £247.30 a week for a single pensioner and £377.40 a week for a couple, ensuring the incomes of the poorest pensioners are protected.”
Older state pensioners who took part in Additional Pension (AP) schemes before they were closed in 2002 can also receive AP payments. The schemes are now defunct and not open to new pensioners, but existing members continue to receive payments from the DWP, which are increased for inflation. AP payments will rise by 3.5% from their current £230.54 per week maximum to an estimated £238.61 from April 6, 2027, an increase of approximately £419 per year. The final monetary figure is set to be confirmed by the DWP before April 2027.
Mr McFadden added: “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. The pension credit savings credit maximum amount will also increase by 3.5%.”
In total, £1,767 of extra cash is available from these four increased payments.
