State pensioners across the UK will receive a £470 annual income boost in 2025, thanks to the latest State Pension uprating confirmed by the Department for Work and Pensions (DWP).
This increase follows the Triple Lock commitment, ensuring pensioners are financially supported in their retirement.
Chancellor Rachel Reeves announced a 4.1% increase for the 2025/26 tax year, which will benefit over 12 million pensioners.
This means that retirees will receive £2,725 more than if pensions had only risen by inflation, which was at a lower rate of 1.7%.
New State Pension Rates for 2025
From April 2025, both the New State Pension and the Old State Pension will increase, ensuring retirees receive a higher weekly and annual payment.
Updated Weekly Pension Rates
| Pension Type | 2024 Rate | 2025 Rate | Increase |
|---|---|---|---|
| New State Pension (Full Rate) | £221.20 | £230.25 | +£9.05 |
| Old State Pension – Category A or B (Basic Pension) | £169.50 | £176.45 | +£6.95 |
| Old State Pension – Category B (Lower Rate) | £101.55 | £105.70 | +£4.15 |
| Old State Pension – Category C or D (Non-Contributory) | £101.55 | £105.70 | +£4.15 |
How Much More Will Pensioners Receive?
- New State Pension claimants will receive £9.05 extra per week, adding up to an annual increase of £470.
- Basic State Pension claimants will see £6.95 extra per week, adding up to around £361 per year.
This increase is part of the Triple Lock policy, which ensures the State Pension rises by the highest of inflation, wage growth, or 2.5% each year.
Pension Credit Increase in 2025
In addition to the State Pension increase, the Pension Credit Standard Minimum Guarantee is also rising by 4.1%. Pension Credit is a top-up payment designed to help low-income pensioners.
Updated Weekly Pension Credit Rates
| Pension Credit Component | 2024 Rate | 2025 Rate | Increase |
|---|---|---|---|
| Standard Minimum Guarantee (Single) | £218.15 | £227.10 | +£8.95 |
| Standard Minimum Guarantee (Couple) | £332.95 | £346.60 | +£13.65 |
| Additional Amount for Severe Disability (Single) | £81.50 | £82.90 | +£1.40 |
| Additional Amount for Severe Disability (Couple – One Qualifies) | £81.50 | £82.90 | +£1.40 |
| Additional Amount for Severe Disability (Couple – Both Qualify) | £163.00 | £165.80 | +£2.80 |
This means a single pensioner on Pension Credit will now receive £11,850 per year, up from £11,400 in 2024.
What This Means for Pensioners
The State Pension increase and Pension Credit uplift provide much-needed financial relief for pensioners facing the rising cost of living. The Triple Lock guarantee ensures that pensions continue to grow and remain fair over time.
For those on low incomes, Pension Credit can offer additional financial support, and pensioners should check if they qualify.
To find out more about the updated rates and how to claim benefits, visit the official government website or contact DWP for assistance.
