Over 12 million pensioners to receive £575 State Pension boost

The Government has already delivered above-inflation increases worth up to £395 in real terms over this Parliament. By its end, pensioners’ annual incomes are expected to rise by up to £2,100 – boosting financial security for millions.

Pension Credit will also rise by 4.8% and be worth an average of £4,300 a year, unlocking further support including help with housing costs, council tax and free television licenses. Between 2026 and 2027, the government will provide a £6 billion boost to spending on State Pensions and pensioner benefits.

The increases come into effect as the government takes wider action to ease pressure on household finances, including raising the National Living Wage, cutting an average of £150 from household energy bills, lifting the two child limit and freezing rail fares and prescription charges.

Work and Pensions Secretary Pat McFadden said:

I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households.

This government will always protect our pensioners, and that’s why we are raising the full rate of new State Pension by up to £575 this coming year.

Minister for Pensions Torsten Bell said:

After a lifetime of work and contribution, people deserve a decent retirement. Raising the State Pensions faster than prices, ensuring it is a pension they can rely on, is how we make that a reality for millions.

In addition to the range of action being taken by government to support families, most working-age benefits, and other benefits for people below State Pension age, will also increase by 3.8% helping millions of households.

This comes alongside action the Government is taking to incentivise work and tackle ill-health, including boosting the standard rate of Universal Credit by 6.2% – the first ever permanent, above-inflation increase – and tackling perverse incentives by introducing a lower Universal Credit health element rate of £217.26 per month for new claimants, compared to the higher rate of £429.80.

Additional information

• The majority of the new rates will apply from Monday 6 April 2025. Please see here for a full list of rising benefits: Benefit and pension rates 2026 to 2027 – GOV.UK
• The full rate of the new State Pension will increase by 4.8% in line with the increase in average earnings from £230.25 to £241.30 a week. The full basic State Pension will increase from £176.45 to £184.90 a week.
• The Standard Minimum Guarantee in Pension Credit will increase by 4.8% in line with the increase in average earnings. From April, it will be £238.00 a week for a single pensioner and £363.25 a week for a couple.
• Details of when the State Pension is paid can be found on GOV.UK: The new State Pension – GOV.UK
• Most working-age benefits and other benefits for people below State Pension age will also increase by 3.8%; including Statutory Payments such as Statutory Sick Pay and Statutory Maternity Pay and the personal allowances of Income Support, Housing Benefit and Jobseeker’s Allowance.
• Universal Credit will be up-rated by September CPI plus an additional 2.3%.
• The increased expenditure as a result of uprating in 2026/27 is estimated to be £11 billion. This includes £6 billion more to be spent on State Pensions and pensioner benefits, £3 billion on working-age benefits, and £2 billion on disability and carers benefits.

source: GOV