The Department for Work and Pensions (DWP) has confirmed a significant boost to the State Pension, set to take effect from April next year. Secretary of State Pat McFadden has laid the proposed rates for the 2026/27 financial year before Parliament, guaranteeing millions of older people a higher weekly income.
How the Triple Lock shapes the increase
The uplift is governed by the government's Triple Lock policy, which ensures pensions rise by the highest of three measures: average earnings growth, inflation, or 2.5%. For the upcoming year, the increase is based on average annual earnings growth of 4.8% recorded between May and July, which was higher than the Consumer Price Index (CPI) inflation rate of 3.8% for the year to September.
This mechanism applies to both the New and Basic State Pensions. Other components, such as Additional State Pension and deferred pensions, will rise in line with the September CPI figure of 3.8%.
The new payment rates from April 2026
From 6 April 2026, the changes will come into force. Those receiving the full New State Pension will see their weekly payment jump from £230.25 to £241.30. Over a full year, this amounts to £12,547, an annual increase of approximately £574.
Recipients on the full Basic State Pension will get £184.90 per week, up from £176.45. This equates to £9,614 annually.
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 for the full New State Pension, though rules differ for those who were 'contracted out'.
Tax implications and government assurances
The rise brings the annual New State Pension to within just £36 of the frozen Personal Allowance threshold of £12,570. This narrow gap means more pensioners with even modest additional income could find themselves liable for income tax.
However, Chancellor Rachel Reeves has provided reassurance. She confirmed that new protections will be implemented to ensure pensioners whose sole income is the State Pension will not pay tax before April 2030. This follows her Autumn Budget announcement that the Personal Allowance will remain frozen at its current level until April 2031.
Other benefit rates are also increasing. For example, the standard minimum guarantee for Pension Credit will rise to £238.00 per week for single claimants and £363.25 for couples.
Pensioners seeking more detailed information on Additional State Pension or Widows Pension increments are advised to consult the official GOV.UK website.
