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State pensioners handed £470 boost in 2025 from DWP | Personal Finance | Finance

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Last updated: December 16, 2024 12:40 pm
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Published: December 16, 2024
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Contents
  • New State Pension
  • Old State Pension
  • Standard minimum guarantee
  • Additional amount for severe disability

State pensioners across the UK will get a £470 income boost next year from the Department for Work and Pensions (DWP).

It was confirmed in the autumn Budget in October that there will be an uprating to pensions in 2025 as Labour committed to the Triple Lock to ensure pensioners are protected in their retirement.

Chancellor Rachel Reeves announced an uprating of 4.1% for the new and basic State Pension in the 2025/26 tax year, which will see retirees become £470 better off.

Labour said the uplift will benefit more than 12 million pensioners when the new rates take effect from April and will give households £2725 more than if the State Pension was uprated by inflation, at a lower rate of 1.7%.

New State Pension

Old State Pension

  • Category A or B basic pension – rising from £169.50 to £176.45 per week

  • Category B (lower) basic pension – spouse or civil partner’s insurance – rising from £101.55 to £105.70 per week

  • Category C or D – non-contributory – rising from £101.55 to £105.70 per week

Further details on Additional State Pension, Increments and Invalidity Allowance are set out on the government website.

In addition, the Pension Credit Standard Minimum Guarantee is also rising by 4.1% from April, increasing from around £11,400 per year to £11,850 for a single pensioner. The new rates are:

Standard minimum guarantee

Additional amount for severe disability

  • Single – rising from £81.50 to £82.90 per week

  • Couple (one qualifies) – rising from £81.50 to £82.90 per week

  • Couple (both qualify) – rising from £163.00 to 165.80 per week

Further details on State Pension rates from April 2025 is set out on the government website.

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