DWP confirms New and Basic State Pension payment shake-up for 2025/26

The Department for Work and Pensions (DWP) is set to confirm 2025/26 State Pension payments as a warning has been issued. The full new DWP State Pension is set to rise by more than 4.1 per cent from April as the Cost of Living crisis continues.

From April next year, state pensioners can expect a 4.1 per cent increase in their New and Basic State Pensions, with additional components seeing a 1.7 per cent rise, thanks to the Triple Lock rule, which is a long-standing pledge from the Labour Party.

This system assures annual increases matching the highest of three statistics: average earnings growth at 4.1%, CPI inflation at 1.7%, or a set 2.5%. The DWP will soon release the full list of uprated State Pension and benefit payments.

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So far, only the New and Basic State Pension rates have been confirmed, not the additional elements (which are increasing by 1.7%). State Pension is currently worth up to £221.20 a week for most, usually paid every four weeks. You can claim it when you turn ‘State Pension age’, which is generally: age 66, age 67, if you were born after April 1960, or age 68, if you were born after April 1977.

How much you’ll get depends on your National Insurance record. To qualify for the full £221.20, you’ll usually need at least 35 years of credits or contributions, and at least ten years to get anything. If you reached State Pension age before 6 April 2016, the full amount of basic State Pension is £169.50.

The State Pension increases in April each year, based on a system known as the triple lock. This means the increase will match the highest of these three percentages: how much general living costs have risen by (inflation), based on the previous September’s Consumer Price Index (CPI) , the average wage increase from May to July of the previous year, or 2.5%.

For example, in 2024, the CPI rate was 1.7% and the average wage increase was 4.1%. This means the State Pension will increase by 4.1% in April 2025. This takes the maximum from £221.20 to £230.25 per week. If you reached State Pension age before 6 April 2016, the full amount of basic State Pension will increase to £176.45, up from £169.50.