The State Pension system is split into two schemes – basic and new – and the amount your pension payments will increase from April 6 depends on when you retired.
UK State Pensioners are in for a financial uplift from April as new payment rates kick in. The State Pension sees an increase at the start of every new tax year on April 6, with the rise determined by three factors known as the ‘triple lock’.
These factors encompass the consumer price index (CPI) measure of inflation (measured for September the previous year), average wage growth between May and July of the previous year, or 2.5%. This year, both the basic and new State Pensions will be uprated by 4.1%, in line with the annual increase in the average weekly earnings index for May to July 2024.
The State Pension system is split into two schemes – basic and new – and the amount your pension payments will increase from April 6 depends on when you retired.
1. Basic State Pension.
Men born before April 6, 1951, and women born before April 6, 1953, who receive the basic State Pension, will see their pensions increase by 4.1% from £169.50 per week to £176.45 – a weekly increase of £6.95. Over a year, this equates to an extra £360 to your pension pot, assuming you get the full rate.
This means those on the full new rate will receive £9,175.40 in pension payments across a full year from April 6, 2025, according to the Express.
To receive the full amount, a certain number of qualifying years of National Insurance is required. For men born between 1945 and 1951, this is usually 30 qualifying years, or 44 qualifying years if you were born before 1945.
Women born between 1950 and 1953 require 30 qualifying years, or 39 qualifying years if they were born before 1950. If you have fewer than the full number of qualifying National Insurance years, your basic State Pension will be less than £176.45 per week.
2. New State Pension
The New State Pension applies to men born on or after April 6, 1951, and women born on or after April 6, 1953. They can claim the new State Pension once they reach State Pension age, which is currently 66.
Those claiming this pension will see their payments increase by 4.1% from April, with the full rate rising from £221.20 per week to £230.25. This equates to an extra £470 in your pension pot over a year, if you get the full rate.
This means those on the full new rate will receive £11,973 in pension payments across a full year from April 6, 2025 – £2,797.60 more per year than those who get the full basic State Pension.
3. Pension Credit
Pension Credit’s standard minimum guarantee is also increasing by 4.1% from April 6. This benefit provides additional funds to those over State Pension age and on a low income to assist with living costs.
Currently, the weekly income is topped up to £218.15 for singles or £332.92 for those with a partner. However, from April, the single weekly rate will increase from £218.15 to £227.10, and the joint weekly rate will go up from £332.95 to £364.60.
Individuals on the single rate will now pocket an extra £8.95 per week, while couples on the joint rate will nab an additional £31.65 weekly. Annually, this translates to a tidy sum of £465.40 for solo beneficiaries and £1,645.80 for partners.
In their statement, the government clarified: “To help make sure pensioners are protected in their retirement, we have also confirmed a 4.1% increase to the basic and new State Pension, as well as the standard minimum guarantee for Pension Credit, from April next year.
“Over 12 million pensioners will benefit as the full new State Pension will rise from £221.20 to £230.25 a week, providing an extra £470 a year. The full basic State Pension will increase from £169.50 to £176.45 per week, worth an extra £360 annually.”
