The Department for Work and Pensions (DWP) has confirmed that older state pensioners with a full National Insurance record will see their basic state pension increase from £184.90 to £192.10 per week, providing an annual boost of around £375.
This maximum weekly rate applies to those with roughly 30 to 35 years of National Insurance contributions. Individual circumstances and National Insurance records may result in different final payments. The amount does not include additional uplifts such as Pension Credit, which depends on income, or Additional Pension (AP) for those enrolled in now-defunct schemes before 2002.
Triple Lock Continues
The increase is driven by the triple lock mechanism, which raises pensions by the highest of inflation, wage growth, or a flat 2.5%. Despite plans to axe the triple lock in 2030, it will still increase pension payments in 2027, 2028, and 2029.
New state pensioners also benefit from the triple lock, with their basic payments rising to £488.80, a higher cash boost due to their higher base rate.
Government Confirmation
In a statutory review for Parliament following the Budget, Pat McFadden wrote: "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."
He added: "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."
New Pensions Tax Allowance
Chancellor John Healey has also announced the new Pensions Tax Allowance, a policy first introduced by Rachel Reeves. Under this measure, state pensioners receiving the full new state pension will not pay tax on it, despite the annual amount reaching £13,036, which exceeds the £12,570 Personal Allowance threshold. Any income under £13,036 will be tax free, including the pension, savings, property income, and salary.
