DWP has announced proposed State Pension rates for 2026/27
Millions of older people are set for a substantial State Pension increase in April. This comes following the confirmation of proposed rates for the 2026/27 financial year by the Secretary of State for Work and Pensions, Pat McFadden.
The suggested new payment rates for the State Pension and benefits have been presented to Parliament and will be implemented from April 6. Under the Triple Lock mechanism, both the New and Basic State Pensions are adjusted annually in accordance with the highest of three figures: the average annual earnings growth from May to July (4.8 per cent), the CPI inflation rate for the year ending in September (3.8 per cent), or 2.5 per cent.
As reported by the Daily Record, additional State Pension components and deferred State Pensions are increased yearly in line with the September CPI figure (3.8 per cent). This uplift will result in recipients of the full New State Pension receiving £241.30 per week, whilst those on the maximum Basic State Pension will receive £184.90 per week.
It’s crucial to note that the amount of State Pension a person receives is contingent upon their National Insurance contributions. To qualify for the full New State Pension, approximately 35 years’ worth of contributions are required, although this may vary if you were “contracted out”.
The full New State Pension is set to rise by approximately £574 to £12,547 over the forthcoming financial year. However, this increase leaves a mere £36 before reaching the Personal Allowance income threshold of £12,570, which could result in more pensioners with any additional income paying tax in retirement.
Chancellor Rachel Reeves recently affirmed that new provisions will be implemented to ensure that pensioners whose only income is the State Pension will not be taxed before April 2030.
This follows Ms Reeves’ announcement during the Autumn Budget that the Personal Allowance will remain frozen at £12,570 until April 2031, extending the original timeline by three years.
New State Pension payment rates for 2026/27
Full New State Pension
- Weekly: £241.30 (up from £230.25)
- Four-weekly pay period: £965.20
- Annual amount: £12,547
Full Basic State Pension
- Weekly: £184.90 (up 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 (up from £105.70)
- Category C or D – non-contributory: £110.75 (up from £105.70)
Complete 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 (up from £227.10)
- Couple: £363.25 (up from £346.60)
Additional amount for severe disability
- Single: £86.05 (up from £82.90)
- Couple (one qualifies): £86.05 (increased from £82.90)
- Couple (both qualify): £172.10 (raised from £165.75)
- Additional amount for carers: £48.15 (previously £46.40)
