The annual State Pension uprating takes effect this week
Millions of pensioners across the UK will see their State Pension boosted this month as the yearly increase kicks in on April 6. The Triple Lock uplift means those claiming the full New State Pension will receive £241.30 each week, while those on the maximum Basic State Pension will get £184.90 weekly.
As reported by the Daily Record, the Triple Lock ensures the New and Basic State Pensions increase annually in line with whichever is highest among average yearly earnings growth from May to July (4.8%), the CPI inflation rate (3.8%) for the year to September, or 2.5 per cent. Additional State Pension components and deferred State Pensions rise each year with September’s CPI figure.
The full New State Pension will climb by around £574 to £12,547 throughout the new financial year. Yet, this increase leaves only £36 before hitting the Personal Allowance income threshold of £12,570, meaning more pensioners with supplementary income could face tax in retirement.
Pensions minister Torsten Bell commented to say: “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.”
The UK Government recently confirmed that HM Revenue and Customs (HMRC) will introduce new measures this year to ensure pensioners – whose only income is the State Pension – will not need to complete a Simple Self Assessment tax return if their payment pushes them over the Personal Allowance threshold of £12,570.
This follows Chancellor Rachel Reeves’ Autumn Budget announcement that the Personal Allowance will remain frozen at £12,570 until April 2031. It’s important to remember that the amount of State Pension an individual receives is determined by their National Insurance contributions.
To qualify for the full New State Pension, roughly 35 years’ worth of contributions are needed, though this may vary for those who were ‘contracted out’.
New State Pension payment rates 2026/27
Full New State Pension
- Weekly: £241.30 (from £230.25)
- Four-weekly pay period: £965.20
- Annual amount: £12,547
Full Basic State Pension
- Weekly: £184.90 (from £176.45)
- Four-weekly pay period: £739.60
- Annual amount: £9,614
Other State Pension rates
- Category B (lower) Basic State Pension – spouse or civil Partner’s insurance: £110.75 (from £105.70)
- Category C or D – non-contributory: £110.75 (from £105.70)
Full details on Additional State Pension, Widows Pension, increments and Invalidity Allowance can be found on GOV.UK.
New Pension Credit rates
Standard minimum guarantee
- Single: £238.00 (from £227.10)
- Couple: £363.25 (from £346.60)
Additional amount for severe disability
- Single: £86.05 (from £82.90)
- Couple (one qualifies): £86.05 (from £82.90)
- Couple (both qualify): £172.10 (from £165.75)
- Additional amount for carers: £48.15 (from £46.40)
State Pension and tax
Guidance on GOV.UK states: “You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates.
Your total income could include:
- the State Pension you get – Basic or New State Pension
- Additional State Pension
- a private pension (workplace or personal) – you can take some of this tax-free
- earnings from employment or self-employment
- any taxable benefits you get
- any other income, such as money from investments, property or savings
Check if you have to pay tax on your pension
Before you can check, you will need to know:
- if you have a State Pension or a private pension
- how much State Pension and private pension income you will get this tax year (April 6 to April 5)
- the amount of any other taxable income you’ll get this tax year (for example, from employment or state benefits)
You cannot use this tool if you get:
- any foreign income
- Marriage Allowance
- Blind Person’s Allowance
Use this online tool at GOV.UK to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on GOV.UK here.
