The UK State Pension is set for another increase in April 2025, following the government’s commitment to the triple lock system. This annual increase ensures pensions rise by the highest of inflation, average wage growth, or 2.5%. But what does this mean for pensioners, and will everyone get the full £221.20 per week?
How Much Will the State Pension Increase?
For those receiving the full new State Pension, the current weekly payment is £221.20 (2024–2025). This will increase by 4.1%, reaching £230.25 per week from April 2025. Over a year, this translates to a pension of £11,975 an increase of approximately £470 annually.
Meanwhile, those on the basic State Pension (for individuals who reached pension age before April 2016) will also see an increase. The current rate of £169.50 per week will rise to £176.45 per week, adding up to £9,175 annually.
Breakdown of the 2025 State Pension Increase
| Pension Type | Current Weekly Rate (2024-25) | New Weekly Rate (2025-26) | Annual Increase |
|---|---|---|---|
| New State Pension | £221.20 | £230.25 | ~£470 |
| Basic State Pension | £169.50 | £176.45 | ~£360 |
These figures are based on the September 2024 wage growth figures, which stood at 4.1%, leading to the same percentage rise in pension payments.
Who is Eligible for the Full State Pension?
Not everyone will receive £230.25 per week. The amount you get depends on your National Insurance (NI) record.
- To qualify for the full new State Pension, you need at least 35 years of National Insurance contributions.
- If you have fewer than 35 years but at least 10 qualifying years, you’ll receive a proportion of the full pension.
- If you were contracted out of additional State Pension schemes (common for public sector and some private sector workers), your pension may be lower.
What If You Have Gaps in Your National Insurance Record?
If you find that you don’t have enough NI contributions, you might be able to top up your record by making voluntary contributions. The government allows you to backdate contributions for missing years, which can help increase your State Pension entitlement.
How Is the Pension Increase Calculated?
The State Pension rises every year under the triple lock guarantee, which means it increases by the highest of:
- Inflation (as measured by the Consumer Prices Index in September of the previous year).
- Average wage growth (based on earnings data from July to September of the previous year).
- 2.5% (if neither of the above two figures is higher).
For April 2025, the increase is based on wage growth of 4.1%, leading to the new pension rates.
What About Pension Credit?
For those on low incomes, Pension Credit is a vital benefit that can top up weekly payments. It is estimated that around 800,000 eligible pensioners do not claim this support, which could provide extra financial help.
How Will This Affect Retirees?
While the pension increase is welcome news, rising living costs continue to impact retirees. Inflation remains a concern, particularly for energy bills, food, and housing costs.
Experts recommend pensioners check all available benefits, including:
- Council Tax Reduction
- Winter Fuel Payments
- Free NHS prescriptions and eye tests
Conclusion
The State Pension increase in April 2025 will see those on the full new pension receive £230.25 per week, while those on the basic State Pension will get £176.45 per week. However, not everyone qualifies for the full amount, as payments depend on National Insurance contributions.
It’s essential to check your State Pension forecast and consider voluntary contributions if needed. For pensioners on low incomes, Pension Credit and other benefits can provide additional financial relief.
Pankaj Kumar is a journalist at Chandigarh X, covering admit cards, recruitment, and government schemes. His articles provide readers with detailed insights into application processes, eligibility, and exam updates.
Outside of work, Pankaj enjoys traveling, fitness, and cricket, often participating in local matches on weekends.