Chancellor Rachel Reeves has confirmed in her Autumn Budget that the state pension will increase by 4.8% from April 2026, adding nearly £575 a year for millions of pensioners. The rise is in line with the triple lock, which guarantees annual increases based on the highest of earnings growth, inflation, or 2.5%.
The full new state pension will rise from £230.25 a week to £241.30 a week, equating to an annual increase of £574.60 to £12,547.60. The basic state pension will increase from £176.45 a week to £184.90 a week (£9,615 a year).
However, the rise brings the full new state pension close to the personal allowance threshold of £12,570, meaning more pensioners could be liable for income tax. Reeves announced that those receiving only the basic or new state pension will not be required to pay small amounts of tax through Simple Assessment, though further details are yet to be provided.
The state pension age is currently 66 but will rise to 67 between 2026 and 2028, and to 68 by the mid-2040s. Entitlement depends on National Insurance records, with most needing 35 qualifying years for the full new state pension.
