The state pension is set to increase by 4.1 per cent in April

Pensioners are set to receive a payment increase next month, providing a boost to their income.

The state pension increases every year on April 6, aligning with the start of the new tax year.

The amount of the increase is determined by the triple lock system, which ensures pensions rise by the highest of the following three factors:

For 2024, the basic and new state pensions will rise by 4.1 per cent, reflecting the annual increase in average weekly earnings from May to July 2024.

Changes will be made to the new and basic state pension rates, as well as additional elements.

Basic State Pension

Men born before April 6, 1951, and women born before April 6, 1953, who qualify for the basic State Pension, will see their payments rise from £169.50 per week to £176.45—an increase of £6.95 per week.

Over a full year, this amounts to an additional £360 for those receiving the full rate.

From April 2025, pensioners on the full basic State Pension will receive £9,175.40 annually. However, the full amount depends on an individual's National Insurance record:

Pensioners with fewer qualifying years will receive less than £176.45 per week.

New State Pension

Men born on or after April 6, 1951, and women born on or after April 6, 1953, qualify for the New State Pension once they reach the State Pension age, which is currently 66.

From April 2025, New State Pension payments will rise by 4.1 per cent, increasing the full rate from £221.20 per week to £230.25.

Over a full year, this amounts to an additional £470, bringing the total annual pension to £11,973 for those receiving the full rate. This is £2,797.60 more per year than the full basic State Pension.

Pension Credit

The standard minimum guarantee for Pension Credit, which provides additional financial support to low-income pensioners, will also increase by 4.1 per cent from April 6, 2025.

These increases aim to support pensioners with rising living costs and ensure greater financial stability for those on low incomes.

Additional state pension (SERPS/S2P)

The State Earnings-Related Pension Scheme (SERPS) and the State Second Pension (S2P), which provide additional payments beyond the basic or new State Pension, will increase by 1.7 per cent from April 2025, in line with inflation.

Protected Payment

Pensioners who reached State Pension age after April 2016 but had already built up additional State Pension (SERPS/S2P) beyond the flat-rate pension amount will continue to receive the difference as a protected payment.

This ensures that those who accrued higher pension entitlements under the old system receive their full entitlement on top of the standard State Pension rate.

Men and women born between October 6, 1954, and April 5, 1960, receive their State Pension at age 66.
For those born after this date, the State Pension age is gradually increasing.

Inherited State Pension

Married Women’s State Pension (Category B Pension)

Over-80s State Pension (Category D Pension)

UK residents aged 80 or over receive a Category D State Pension, which will increase by 4.1 per cent to £105.70 per week from April 2025.

If a pensioner is already receiving more than £105.70 per week, this payment does not apply as an additional benefit.

The over-80s additional payment remains frozen at 25p per week.

Pensioners who receive less than £101.55 per week in basic State Pension may have their payments topped up to this amount.

For example, someone receiving £43 per week in basic State Pension could get a £58.55 top-up, bringing their total weekly pension to £101.55.

Graduated Retirement Benefit (GRB) Increase

The Graduated Retirement Benefit (GRB), which was the predecessor to the Additional State Pension (SERPS/S2P) and ran from 1961 to 1975, will increase by 1.7 per cent from April 2025.