The New and Basic State Pension payment rates increased by 4.1 per cent on April 7, but the majority of the 13 million older Brits will have to wait until next month before they see the full uprating. However, a specific group of pensioners will receive the higher amounts as early as next week.
The Department for Work and Pensions (DWP) can issue the State Pension weekly, fortnightly or every four weeks in arrears. The frequency of payments is determined by the applicant at the point of claim, and defaults to every four weeks when claimed online. This can be changed by contacting the DWP and requesting the change.
This means that pensioners who chose weekly payments could see up to £230.25 land in their bank accounts next week. Remember, payments are made in arrears, so this may be a mix of new and old payment rates.
It’s important to note that if a letter from the DWP has not yet arrived, it does not mean you won’t receive the uprating – this letter is for your records and provides information on the new rate and entitlement to Pension Credit. It does not delay payments, reports the Daily Record.
Those on the full New State Pension will see a weekly increase of £9.05, from £221.20 to £230.25. Typically paid every four weeks, this amounts to £921. The uplift will result in an annual rise of £473.60, from £11,502 to £11,973 over the 2025/26 financial year.
The full Basic State Pension will see a weekly increase of £6.95, from £169.50 to £176.45, or £705.80 every four weeks. This means that annual payments will rise by £361.40, from £8,814 to £9,175.40 over the 2025/26 financial year.
It’s important to remember that not all of the 4.1 million people on the New State Pension receive the full amount as it is tied to National Insurance Contributions.
To find out your future State Pension payments, you can use the online forecasting tool on GOV.UK here.
Full New State Pension
Full Basic State Pension
The Labour Government has committed to maintaining the Triple Lock for the duration of its term and the latest predictions show the following projected annual increases.
Recent analysis from Royal London revealed that only about half of the individuals who received the New State Pension last year were getting the full weekly amount, with approximately 150,000 receiving less than £100 per week.
The Department for Work and Pensions (DWP) is set to send letters to all 13 million State Pensioners ahead of the uprating, informing them of their new payment rates. These letters also encourage older individuals to check if they’re eligible for Pension Credit.
Sandra Wrench, a former DWP employee, has revealed that while most State Pension payments are accurate, tens of thousands have been incorrect in the past and are currently under review by the DWP and HM Revenue and Customs (HMRC) due to historical errors.
If you’re unsure about how to interpret the letter, an ex-DWP employee with 42 years’ experience working with State Pensions and benefits offers a detailed explanation here.
In terms of State Pension and tax, the Personal Allowance will stay frozen at £12,570 throughout the 2025/26 financial year.
It’s vital to note that someone solely on the full New State Pension won’t pay income tax for the next two years. However, older people with additional income through employment, private or workplace pensions may need to pay tax.
The tax paid is only on the amount exceeding the personal allowance, not the entire sum.
If you have additional income on top of your State Pension, you might be required to pay tax. This is paid a year in arrears, so if the uplift for the 2025/26 financial year takes you over the threshold, you won’t receive a tax bill from HM Revenue and Customs (HMRC) until July 2026.
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