Starting April 6, 2025, UK state pensioners will receive a 4.1% increase in their payments as part of the government’s annual pension uplift. This increase is based on the triple lock system, ensuring pensions rise according to the highest of three factors:
- Inflation (CPI) for September of the previous year
- Average UK wage growth from May to July of the previous year
- A minimum increase of 2.5%
For 2025, the 4.1% increase is based on wage growth, affecting both the Basic State Pension and the New State Pension. Additionally, Pension Credit rates will also see a boost.
Let’s explore how much pensions will increase, who qualifies, and what this means for pensioners.
1. Increase in Basic State Pension
- Applies to men born before April 6, 1951 and women born before April 6, 1953.
- Pensioners receiving the Basic State Pension will see an increase from £169.50 per week to £176.45 per week.
- This means a weekly increase of £6.95, adding up to an extra £360 per year.
National Insurance Contribution Requirements
To receive the full Basic State Pension, you need:
- 30 qualifying years if born between 1945 and 1951.
- 44 qualifying years if born before 1945 (men).
- 39 qualifying years if born before 1950 (women).
- If you have fewer than the required years, your pension will be lower than £176.45 per week.
2. Increase in New State Pension
- Applies to men born on or after April 6, 1951 and women born on or after April 6, 1953.
- Pensioners receiving the New State Pension will see an increase from £221.20 per week to £230.25 per week.
- This means a weekly increase of £9.05, adding up to an extra £470 per year.
- Total annual pension payments will be £11,973 from April 2025, which is £2,797.60 more per year than those on the full Basic State Pension.
National Insurance Contribution Requirements
To receive the full New State Pension, you need:
- 35 qualifying years of National Insurance contributions.
- If you have between 10 and 35 years, you’ll receive a partial pension.
3. Increase in Pension Credit
- Pension Credit helps low-income pensioners top up their weekly income.
- The standard minimum guarantee is increasing by 4.1% from April 6, 2025.
New Pension Credit Rates from April 2025
| Pension Credit Type | Current Weekly Rate (£) | New Weekly Rate (£) | Annual Increase (£) |
|---|---|---|---|
| Single Claimant | £218.15 | £227.10 | £465.40 |
| Couple Claim | £332.95 | £364.60 | £1,645.80 |
- Single pensioners will receive an extra £8.95 per week.
- Couples will receive an additional £31.65 per week.
Who Can Claim Pension Credit?
- Available to pensioners on a low income.
- Can provide access to additional benefits, including help with housing costs, NHS services, and council tax reductions.
Government’s Statement on Pension Increases
The UK government confirmed that:
- Over 12 million pensioners will benefit from these increases.
- The full New State Pension will rise to £230.25 per week, adding £470 annually.
- The full Basic State Pension will increase to £176.45 per week, adding £360 annually.
- The Pension Credit standard minimum guarantee will also rise, helping low-income pensioners.
FAQ’s
How much will UK state pensions increase in April 2025?
State pensions will increase by 4.1%, with the Basic State Pension rising to £176.45 per week and the New State Pension increasing to £230.25 per week.
Who qualifies for the Basic State Pension?
Men born before April 6, 1951, and women born before April 6, 1953, qualify for the Basic State Pension.
How many National Insurance years do I need for the full New State Pension?
You need 35 qualifying years of National Insurance contributions for the full New State Pension. If you have between 10 and 35 years, you’ll receive a partial amount.
What are the new Pension Credit rates from April 2025?
Single pensioners will receive £227.10 per week, while couples will get £364.60 per week under the Pension Credit standard minimum guarantee.
Can I still claim Pension Credit if I have savings?
Yes, but the amount you receive may be affected. Pension Credit is based on income, but additional savings may impact your eligibility.