The Department for Work and Pensions (DWP) has confirmed that the full new state pension will rise by 3.9% to £250.70 a week from April 12, taking annual payments above the frozen personal tax allowance.
In its annual review, the government said the increase means people on the full new state pension will receive £13,036.40 over 12 months, pushing the annual rate above the £12,570 personal tax allowance, which remains frozen.
New rates for 2027-28
The government said pensioners with incomes at or under the value of the full new state pension will not be brought into paying tax because of the state pension uprating in this Parliament. The personal tax allowance will apply from April 6, 2027 until April 5, 2030, and will be uprated in line with the full new state pension across this Parliament, according to Budget documents.
The published rates show the full new state pension rising from £241.30 to £250.70 a week. The basic state pension under the old scheme will increase from £184.90 to £192.10 a week for Category A or B, while the lower Category B rate for a spouse or civil partner's insurance will rise from £110.75 to £115.05. The non-contributory Category C or D rate will also increase from £110.75 to £115.05.
Triple lock commitment
In a statement to Parliament, Work and Pensions Secretary of State Pat McFadden said: "The new rates will apply in the tax year 2027-28 and will mainly come into effect from 12 April 2027.
"I am pleased to announce that the basic and full rate of the new state pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026.
"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.
"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.
"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%."
Who is affected
State pension increases are calculated under the triple lock, meaning they rise each year in line with earnings, inflation, or 2.5%, whichever is higher. Recent figures used in the calculation for next year showed the earnings figure to be the highest of the three measures, at 3.9%.
Some people do not receive the full state pension, and older retirees receive the basic state pension, which is currently £184.90 per week for the full amount. People on the full basic state pension are set to see their annual income rise to around £9,989 per year from next April.
The government has said it plans to adjust the triple lock from April 2030 so the state pension rises each year by the highest of 2.5%, inflation, or the amount required to maintain its value relative to earnings as reached in April 2029. The state pension overhaul will help fund a National Care Service in England.
