The DWP is boosting various pension payments from April (Image: Getty)
State pensioners are being handed a pile of triple lock-powered payment increases starting from April 6.
The DWP has locked in another set of benefit boosts for older people set to take effect from the new tax year, with rises in the state pension payments for both new and older state pensioners as well as Pension Credit and various other less well-known pension payments.
Below is a roundup of some of the key state pension payments and how much they are set to increase by from April 6 thanks to the triple lock.
All pension payments are illustrated using a maximum National Insurance record, which is roughly 30 to 35 years of working in the UK for at least 20 hours a week. Those with incomplete records, due to factors like leaving the UK, career breaks or childcare, won’t necessarily get the full amount.
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Triple lock
The triple lock governs pension increases. The system was introduced back in 2011 and guarantees that state pension payments must increase in line with one of three metrics: wage growth, inflation or a flat 2.5%.
This year, the triple lock is 4.8%, because wage growth is 4.8%, which is higher than inflation and obviously higher than 2.5%.
It is this figure which then feeds into the state pension increase for both new state pensioners and older pre-2016 basic state pensioners.
Basic state pension and new state pension
The old basic state pension is for pre-2016 state pensioners, i.e. those who hit state pension age by April 2016.
The basic state pension is increasing by 4.8% thanks to the triple lock, up from a maximum £176.45 a week to £184.90 per week, for a total of £9,614.80.
The new state pension is increasing by the same 4.8% triple lock boost. It is for state pensioners who hit state pension age from April 2016.
The amount is increasing from £230.25 per week up to £241.30 per week, for a maximum of £12,547 a year.
Crucially, this is still below the £12,570 Personal Allowance threshold, meaning those with no other income won’t pay tax on their pension payments. As an aside, from next April, the government has announced a special exemption for state pensioners who only have the state pension, meaning they still won’t owe tax.
Pension Credit
Pension Credit is the pension age income boosting benefit which helps those with lower pension payments, particularly older state pensioners, though new state pensioners can claim it too.
Pension Credit is increasing by 4.8% due to wage growth, up from £227.10 to £238 a week for a maximum £12,376 per year, just a few hundred off the full new state pension anyway.
If your total income including the state pension is lower than £238, you will probably qualify, and this is also a gateway benefit for several other freebies and discounts like free TV licences for over 75s, dental care, council tax reductions, the Warm Home Discount and Cold Weather Payments.
State pension age rise
The age at which retirees can claim their pension benefits from the state is set to begin going up from April 2026 for people born in certain date ranges.
This state pension age increase was put into law in 2014, but the age rise is not happening at the same time for all pensioners. Instead, it is being gradually phased in over a period of three tax years.
So for some state pensioners, they will receive their state pension at age 66 and 1 month, all the way up in one month increments to those who will get theirs aged 66 and 11 months, and then finally, pensioners who will not receive theirs until age 67.
Those who were born between April 6, 1960 and May 5, 1960 will get their state pension from 66 years and 1 month – that means they will be eligible for state pension payments from May 6 to June 6, 2026, whereas without the age rise it would have been April.