Over 12 million pensioners will benefit from a State Pension increase of up to £575 a year, the Pensions Minister has saidLinda Howard Money and Consumer Writer and Lauren Haughey Lifestyle and Money Reporter

13:02, 06 Jan 2026Updated 13:02, 06 Jan 2026

Stressed and Worried Senior Woman Calculating Domestic Expenses, Sitting at Dining Table in the kitchen, People, Accounting, Finances, Family Budget and Financial Issues Concept.Nearly one million pensioners could boost their annual income(Image: PixeloneStocker via Getty Images)

The Department for Work and Pensions (DWP) has detailed the financial support available to help those over State Pension age cope with the cost of living. Pensions Minister Torsten Bell affirmed the Department’s commitment to assisting pensioners with living costs and ensuring their financial security in retirement.

Bell’s comments were made in a written response to Tory MP Sir Andrew Mitchell, who had asked about the assistance available for residents in his Sutton Coldfield constituency dealing with the cost of living. Yet, the additional financial aid he outlined serves as a handy guide for pensioners across the country to ensure they’re not missing out on any extra cash or benefits, especially at this time of year.

The Pensions Minister emphasised that the State Pension is the ‘foundation of income in retirement and will remain so’. According to the Daily Record, he continued: “At Autumn Budget 2025, we announced that, in line with the government’s commitment to the Triple Lock throughout this parliament, over 12 million pensioners will benefit from a 4.8 per cent increase to their Basic or New State Pension in April 2026, increasing their income by up to £575 a year.”

Piggy Bank and Stack of CoinsThe DWP outlined what cost of living support is available in a written message(Image: seksan Mongkhonkhamsao via Getty Images)

Mr Bell also drew attention to how pensioners are set to receive a ‘substantial increase in 2025/26, with those receiving a full new State Pension getting a £360 boost’. He went on to explain that the Pension Credit Standard Minimum Guarantee will increase by 4.8 per cent in April, rising from £227.10 to £238 a week for a single pensioner and from £346.60 to £363.25 a week for a couple. In turn, the Pension Credit increases are ‘protecting the income of the poorest pensioners’.

Pensioners in England and Wales who receive Pension Credit will also be automatically eligible for the Cold Weather Payment alongside other benefits. Meanwhile, pensioners in Scotland will automatically receive the annual Winter Heating Payment, valued at £59.75, by mid-February.

The Pensions Minister continued: “The Winter Fuel Payment will benefit over three quarters of pensioners for the duration of this parliament, targeting help to those on lower and middle incomes while ensuring fairness for pensioners and taxpayers.”

He also added: “To help with ongoing cost of living pressures, the government will remove around £150 on average off household energy bills across Great Britain from April 2026. By ending the Energy Company Obligation, we are taking some of the expensive legacy levies off bills.

Senior woman has financial problems. Counting money, monthly pension, don’t have enough money for paying bills.Anyone can check their eligibility for benefits like Pension Credit at GOV.UK (stock image)(Image: Halfpoint Images via Getty Images)

“We are expanding the Warm Home Discount to around an additional 2.7 million households. This means that from this winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs. The Warm Home Discount regulations expire in 2026, and we will want to consider all options for future bill support beyond this point.”

Alongside this, he went on to explain that the UK Government is providing additional support for low-income households in England through the Warm Homes Plan, which will ‘support investment in insulation and low carbon heating – upgrading millions of homes over this Parliament’.

He said: “At the recent Budget, we announced £1.5 billion in new funding to support households facing fuel poverty.”

How to check eligibility for Pension Credit

Pensioners, along with friends and relatives, can quickly verify their eligibility and obtain an estimate of potential payments by using the online Pension Credit calculator available on GOV.UK here.

Alternatively, you can ring the Pension Credit helpline directly on 0800 99 1234 to submit a claim. The helpline operates from 8am to 6pm, Monday to Friday.

Professional guidance and support is also available from:

You can find more information about claiming Pension Credit on GOV.UK here.