Prime Minister confirms future plans for State Pension payments for millions of older people

Linda Howard
·3-min read

Sir Keir Starmer confirmed there will be “no means-testing of the State Pension under this Labour Government” during Prime Minister’s Questions on Wednesday. Following Labour’s eligibility rule change to the Winter Fuel Payment, shortly after coming into power in July, speculation has been mounting that the State Pension may be next to be reviewed.

However, when Labour MP Damien Egan (Bristol North East), asked: “Does the Prime Minister agree that means-testing the State Pension would do severe harm? And will he confirm that this Government will always protect the State Pension and the Triple Lock?” Sir Keir replied: “Let me be absolutely clear, there will be no means-testing of the State Pension under this Labour Government.”

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The Prime Minister continued: “We’re committed both to the Triple Lock and to the principle that people should receive pension based on their contribution, regardless of their wealth.”

He added: “When people like the Leader of Opposition say that they want means-testing, that means a cut, the difference is they cut pensions, we are increasing them.”

New figures from the Department for Work and Pensions (DWP) show there are now 12.9 million people claiming the State Pension, 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 on April 7 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.

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 has published the full list of State Pension and benefit uprated payments on GOV.UK here, which also includes additional elements such as the deferred rates, which are rising by 1.7 per cent (September Consumer Price Index inflation rate).

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 duration of its term 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.

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