A number of major changes will affect state pensioners from April 6
The start of the new financial year on April 6 will bring a number of major changes for anyone receiving state pension payments. Pensions Minister Torsten Bell noted the Government hopes to provide ‘financial security and dignity’ for pensioners through these changes and supports.
Responding to a Parliamentary question about how the DWP plans to prevent pensioner poverty, the Labour MP wrote: “From April 6, both the basic and new State Pensions will increase by 4.8 per cent, benefitting over 12 million pensioners by up to £575. Our commitment to maintain the Triple Lock throughout this Parliament – helping to raise the value of the State Pension over time – will see pensioners’ yearly incomes rising by up to £2,100.”
Triple Lock is the mechanism that increases state pension rates each year by the highest of three figures:
- Wage growth
- Inflation
- 2.5 per cent
This year, the state pension rates are rising by 4.8 per cent in line UK wage growth. This will take the full new state pension weekly rate from £230.25 to £241.30 while the full basic state pension will rise from £176.45 to £184.90 per week.
The standard minimum guarantee for Pension Credit will also increase by 4.8 per cent, taking payments up to £238 a week for a single pensioner and £363.25 a week for a couple. The minister called this benefit a “vital financial safety net”.
He highlighted: “Receipt of Pension Credit also opens the door to a whole range of additional support, which is why maximising Pension Credit take-up is a key departmental priority. We have been running the biggest campaign to date encouraging pensioners and their families to check their eligibility and to apply.”
The MP also highlighted support from Housing Benefit and the new Crisis and Resilience Fund that would go to helping pensioners, among others, who are at risk of hardship.
4.7 million people receive the new state pension as of February 2025. However, only around half receive the full amount. To claim the full new state pension, you need a minimum of 35 qualifying years.
These are years in which you paid National Insurance, bought voluntary contributions or received National Insurance credits. If you have less than 35 years on your National Insurance record but more than 10 years, you’ll get an proportion of the state pension rate.
As of May 2024, the average weekly amount actually received by people on the new state pension ranged from £205 to £209.49 between women and men respectively. In comparison, the full new state pension is worth £230.25 a week before the April 6 increase.
Those who are receiving the full new state pension face another potential issue as the increase on April 6 will bring their income within inches of their personal allowance. This is the amount a person can take home each year before paying income tax.
Chancellor Rachel Reeves has assured that anyone whose sole income is the state pension won’t have to pay income tax on it if it breaches the threshold next April. However, having more than £50 a year from other incomes like savings or working may be enough to trigger an HMRC bill.
