Full New State Pension payments set to rise to £921 each month from next April

Linda Howard
·3-min read

New figures from the Department for Work and Pensions (DWP) show there are now 12.9 million people claiming the State Pensions, including over 1.1m in Scotland. Some 4.1m are on the New State Pension (post-April 2016) while 8.8m are receiving the Basic (or Old) State Pension (pre-April 2016).

The New and Basic State Pensions are set to rise in April by 4.1 per cent, under the earnings growth measure of the Triple Lock, however, additional elements along with working age and disability benefits, will increase by 1.7 per cent under the September Consumer Price Index (CPI) inflation rate.

READ MORE: DWP confirms new Pension Credit claims worth £4,200 each year on average

READ MORE: Full list of benefits and payments only people over State Pension age can claim

The DWP recently set out the proposed new payment rates for the 2025/26 financial year. People on the full New State Pension will see payments rise by £9.05 per week from £221.20 to £230.25 and as the payment is typically made every four weeks this amounts to £921.

The uplift will see annual payments rise by £473.60 from £11,502 to £11,973 over the 2025/26 financial year. However, it’s important to be aware that not all of the 4.1m people on the New State Pension receive the full amount as it is linked to National Insurance Contributions.

Someone on the full Basic State Pension will see weekly payments rise by £6.95 per week from £169.50 to £176.45, or £705.80 every four-week payment period. Annual payments will rise by £361.40 from £8,814 to £9,175.40 over the 2025/26 financial year.

To check your own future State Pension payments, use the online forecasting tool on GOV.UK here.

State Pension payments 2025/26

The DWP will publish the full list of State Pension and benefit uprated payments shortly, so far they have only confirmed the New and Basic State Pension rates, not additional elements (which are rising by 1.7%).

Full New State Pension

  • Weekly payment: £230.25 (from £221.20)

  • Four-weekly payment: £921 (from £884.80)

  • Annual amount: £11,973 (from £11,502)

Full Basic State Pension

  • Weekly payment: £176.45 (from £169.50)

  • Four-weekly payment: £705.80 (from £678)

  • Annual amount: £9,175 (from £8,814)

Future State Pension increases

The Labour Government has pledged to honour the Triple Lock or the next five years and the latest predictions show the following projected annual increases:

  • 2025/26 - 4.1% confirmed, the forecast was 4%

  • 2026/27 - 2.5%

  • 2027/28 - 2.5%

  • 2028/29 - 2.5%

  • 2029/30 - 2.5%

Recent analysis released by Royal London revealed only around half of people receiving the New State Pension last year were getting the full weekly amount - and around 150,000 were on less than £100 per week.

The DWP will issue letters to all 12.9m State Pensioners in March telling them their new payment rates. This letter also encourages older people to check if they are eligible for Pension Credit.

State Pension and tax

The Personal Allowance will remain frozen at £12,570 over the 2025/26 financial year.

The most important thing to be aware of is that people whose sole income is the State Pension will not pay income tax.

However, anyone with additional income on top of their State Pension may need to pay tax. This is paid a year in arrears, so if next year's uplift takes you over the threshold, you will not receive a tax bill from HM Revenue and Customs (HMRC) until July 2026.

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