State pensioners across the UK are set to receive more money in their weekly payments thanks to a 4.1% increase from the Department for Work and Pensions (DWP). Starting April 6, 2025, this boost includes changes to Pension Credit, the basic state pension, and the new state pension, offering vital support for older people on low or fixed incomes.
Let’s break down how much extra you could get, who qualifies, and what to expect next—along with key concerns surrounding future tax and policy changes.
Pension Credit Rises – What You Need to Know
Pension Credit is a means-tested top-up for pensioners on a low income. It ensures you receive a minimum guaranteed income per week.
From April 6, 2025, the Standard Minimum Guarantee is:
- Single pensioner: increased from £218.15 to £227.10/week
- Couple: increased from £332.95 to £364.60/week
This equates to:
- An annual rise of £464.20 for single claimants
- A £1,645.80 yearly increase for couples
Tip: Pension Credit is not automatic. You must apply through the GOV.UK Pension Credit page or call the Pension Credit helpline on 0800 99 1234.
New State Pension 2025 Rates
The full new state pension applies to:
- Men born on or after April 6, 1951
- Women born on or after April 6, 1953
Weekly amount:
- Increased from £221.20 to £230.30
- That’s an annual income of £11,975, up from £11,502
Basic State Pension 2025 Rates
The basic state pension applies to:
- Men born before April 6, 1951
- Women born before April 6, 1953
Weekly amount:
- Increased from £169.50 to £176.45
- That’s a yearly income rise from £8,814 to £9,175
Important: These are maximum amounts. Your pension may be lower if you haven’t built up enough National Insurance contributions.
Triple Lock: A Double-Edged Sword?
The triple lock guarantees that the state pension increases each year by the highest of these three:
- Inflation (CPI)
- Average earnings growth
- 2.5%
For April 2025, the increase is 4.1%, based on earnings.
However, this generous system is now clashing with tax thresholds. The personal allowance (amount of income you can earn before paying tax) is frozen at £12,570 until 2028. With the new state pension now at £11,975/year, it’s getting very close to the tax threshold—and by 2026, some pensioners may have to start paying income tax on their pension.
Experts Warn of a ‘Tax Cliff’ for Pensioners
Jon Greer, Head of Retirement Policy at Quilter, explains:
“With the state pension rising each year under the triple lock while the personal allowance is frozen, we’re approaching a situation where pensioners pay tax on state pension income—which was meant to help them avoid poverty.”
This could lead to:
- Calls for the triple lock to be reformed or scrapped
- Adjustments to tax thresholds in future Budgets or Autumn Statements
One proposed reform is to align increases with wage growth only, with inflation-based rises used only when needed—creating a more sustainable system.
| Pension Type | Previous Rate (Weekly) | New Rate (Weekly) | Annual Increase |
|---|---|---|---|
| New State Pension | £221.20 | £230.30 | +£473 |
| Basic State Pension | £169.50 | £176.45 | +£361 |
| Pension Credit (Single) | £218.15 | £227.10 | +£464 |
| Pension Credit (Couple) | £332.95 | £364.60 | +£1,645 |
Note: Apply for Pension Credit if your income is below these thresholds—you could also qualify for Housing Benefit, a free TV licence (over 75s), and other perks.
FAQ’s
How much is the Pension Credit rising in April 2025?
From April 6, 2025, Pension Credit’s standard minimum guarantee increases to £227.10 for singles and £364.60 for couples—a 4.1% rise.
What is the full new state pension amount for 2025?
The new state pension rises to £230.30 a week or £11,975 a year in April 2025 for those eligible.
Who qualifies for the basic state pension?
The basic state pension applies to men born before April 6, 1951, and women born before April 6, 1953.
Will pensioners pay tax on their pension from 2026?
Possibly. With the state pension rising and the personal allowance frozen, many pensioners may start paying income tax from 2026 unless thresholds are reviewed.
How do I apply for Pension Credit?
You can apply online at gov.uk, by phone via 0800 99 1234, or by post. It’s not automatic, so you need to make a claim if eligible.
