Millions of pensioners across the United Kingdom are set to receive a substantial boost to their weekly income from April next year. The Department for Work and Pensions (DWP) has laid out its proposed State Pension rates for the 2026/27 financial year, confirming a significant rise for both the New and Basic State Pensions.
The Triple Lock in action for 2026
Secretary of State for Work and Pensions, Pat McFadden, has presented the proposed new payment rates to Parliament. The increases, scheduled to take effect from 6 April 2026, are governed by the government's Triple Lock policy. This mechanism guarantees the State Pension rises by the highest of three figures: average earnings growth, inflation, or 2.5%.
For the upcoming year, the increase is based on the average annual earnings growth figure of 4.8%, measured from May to July. This was higher than the Consumer Price Index (CPI) inflation rate of 3.8% for the year ending September, and the 2.5% minimum guarantee.
What the new payment rates mean for you
The application of the Triple Lock will result in a notable weekly increase for recipients. Those who qualify for the full New State Pension will receive £241.30 per week, up from the current rate of £230.25. Over a full financial year, this amounts to £12,547, representing an annual increase of approximately £574.
Pensioners on the full Basic State Pension will see their weekly payment rise to £184.90, compared to the current £176.45. This provides an annual total of £9,614.
It is vital to remember that the actual amount an individual receives depends on their National Insurance record. Typically, around 35 years of qualifying contributions are needed to get the full New State Pension, though this can be affected if you were ever 'contracted out' of the additional State Pension.
Tax implications and support for low-income pensioners
This rise brings the annual New State Pension to within just £36 of the Personal Allowance income tax threshold, which is frozen at £12,570 until April 2031. This narrow margin means more retirees with any additional income, however small, could find themselves liable for income tax.
Chancellor Rachel Reeves has moved to reassure the lowest-income pensioners. She has confirmed that new provisions will ensure those whose sole income is the State Pension will not pay tax before April 2030. This follows her Autumn Budget announcement extending the freeze on the Personal Allowance.
Alongside the State Pension, Pension Credit rates are also rising, providing crucial support for pensioners on lower incomes. The standard minimum guarantee will increase to £238.00 per week for single people and £363.25 for couples.
The proposed rates for other pension-related benefits have also been published:
- Category B (lower) Basic State Pension: £110.75 per week.
- Category C or D (non-contributory): £110.75 per week.
- Additional amounts for severe disability and carers within Pension Credit have also been raised.
Full details on all State Pension components, including Additional State Pension and Widows Pension, are available on the official GOV.UK website. Pensioners are encouraged to check their entitlement and ensure they are receiving all the financial support available to them.
