The three State Pension changes hitting bank accounts from April
Reach Daily Express March 14, 2025 12:39 AM

State Pensioners across the UK are in line for an income boost from April as new payment rates take effect.

The increases at the start of every new tax year on April 6 and the amount it goes up is based on three factors, known as the . The new pension rates are determined by what is highest out of the consumer price index (CPI) (measured for September the year before), average wage growth between May and July of the previous year, or 2.5%. This year, the basic and new State Pensions will be uprated by 4.1%, in line with the annual increase in the average weekly earnings index for May to July 2024.

As the State Pension system is split into two schemes - basic and new - the amount your pension payments will increase from April 6 depends on when you retired.

1. Basic State Pension

Men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension and will see their pensions increase by 4.1% from £169.50 per week to £176.45 - a weekly increase of £6.95.

Over the course of a year this amounts to an extra £360 to your pension pot, providing you get the full rate. It means those on the full new rate will receive £9,175.40 in pension payments across a full year from April 6, 2025.

You need to have a certain number of qualifying years of National Insurance to get this full amount, which for a man is usually 30 qualifying years if you were born between 1945 and 1951, or 44 qualifying years if you were born before 1945.

For women, you'll need 30 qualifying years if you were born between 1950 and 1953, or 39 qualifying years if you were born before 1950.

If you have less than the full number of qualifying National Insurance years then your basic State Pension will be less than £176.45 per week.

2. New State Pension

Men born on or after April 6, 1951, and women born on or after April 6, 1953, are eligible to claim the new State Pension once you reach State Pension age, which is currently 66.

People claiming this pension will also see their payments increase by 4.1% from April, with the full rate rising from £221.20 per week to £230.25.

Over the course of a year this amounts to an extra £470 in your pension pot, if you get the full rate. It means those on the full new rate will receive £11,973 in pension payments across a full year from April 6, 2025 - £2,797.60 more per year than those who get the full basic State Pension.

3. Pension Credit

The standard minimum guarantee for Pension Credit is also rising by 4.1% from April 6. The benefit provides extra money to those over State Pension age and on a low income to help with living costs.

Currently, it tops up your weekly income to £218.15 if you're single, or to £332.92 if you have a partner. But from April, the single weekly rate is rising from £218.15 to £227.10, while the joint weekly rate will rise from £332.95 to £364.60. So those getting the single rate will get £8.95 extra per week, while those on the joint rate will get £31.65 extra per week.

Over the course of a year, this will provide those who are single with £465.40 more annually, while couples will be £1,645.80 better off per year.

The government said: "To help make sure pensioners are protected in their retirement, we have also confirmed a 4.1% increase to the basic and new State Pension, as well as the standard minimum guarantee for Pension Credit, from April next year.

"Over 12 million pensioners will benefit as the full new State Pension will rise from £221.20 to £230.25 a week, providing an extra £470 a year. The full basic State Pension will increase from £169.50 to £176.45 per week, worth an extra £360 annually."

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