Starting Monday, April 7, 2025, the UK government will increase the State Pension. This decision came after MPs gave the green light to plans from the Autumn Budget. The idea is to help pensioners keep up with rising living costs by giving them a bit more money every week.
What’s Changing with the State Pension?
The government is increasing the State Pension by 4.1%. This matches how much average earnings have gone up across the country. It’s part of the Triple Lock system – a rule that says the pension has to rise every year based on whichever is higher: inflation, average wages, or 2.5%.
Here’s what this means in real numbers:
New State Pension (for people who retired after April 6, 2016):
- Weekly payment: £230.25 (was £221.20)
- Monthly (4-week) payment: £921 (was £884.80)
- Annual total: £11,973 (was £11,502)
Basic State Pension (for those who retired before April 6, 2016):
- Weekly payment: £176.45 (was £169.50)
- Monthly (4-week) payment: £705.80 (was £678)
- Annual total: £9,175 (was £8,814)
So if you’re on the New State Pension, you’ll get about £9 more each week, or over £470 more a year.
What About Pension Credit?
If you get Pension Credit, that’s going up too. This is a benefit that tops up your income if you’re over State Pension age and earning less than a certain amount. It also helps unlock extra perks like:
- Council tax discounts
- Free TV licences (if you’re 75 or older)
- Help with housing costs
Here’s how much more you’ll get:
- Single pensioners: New minimum income is £227.10/week (was £218.15)
- Couples: Now £346.60/week (was £332.95)
Again, this is a 4.1% boost, and you don’t need to do anything to get it – it’ll happen automatically.
What’s This About a Tax Petition?
There’s growing concern about pensioners being taxed on their pension income. Right now, if your income (including your State Pension and any private pensions) goes above £12,570 a year, you pay income tax.
A petition started by Alan David Frost is calling for this threshold to rise to £20,000. Over 230,000 people have signed it. The idea is:
- Pensioners shouldn’t be taxed on money meant to support them
- Raising the threshold would help low earners and pensioners keep more money
- It could reduce dependency on benefits and boost the economy
The Treasury has responded, but no changes to this threshold were made in the Spring Budget 2025.
In Simple Terms
- From April 7, the State Pension goes up by 4.1%.
- Pensioners will get about £9 more a week.
- Pension Credit is rising too, to help low-income retirees.
- There’s growing pressure to stop taxing pensioners on low incomes, but no changes yet.
For many retirees, the State Pension is their main or only income. With costs going up – whether it’s groceries, energy bills, or rent – even a small increase makes a difference. And Pension Credit doesn’t just offer more money; it opens the door to freebies and savings that can really ease financial pressure.
So if you’re receiving a State Pension or about to, this raise is good news. Just make sure you’re also checking if you’re eligible for Pension Credit or other support you might be missing out on.
FAQs
1. When will the new State Pension rates start?
The new rates will begin on Monday, April 7, 2025. Pensioners will see an increased amount in their payments after this date.
2. Do I need to apply to get the increased amount?
No, you don’t need to apply. If you’re already receiving State Pension or Pension Credit, the increase will be applied automatically.
3. What are the new Pension Credit rates from April 7, 2025?
- Single pensioners: £227.10 per week (was £218.15)
- Couples: £346.60 per week (was £332.95)
4. Did the Spring Budget 2025 change the tax threshold?
No, the income tax threshold remains at £12,570, despite the petition. The government has acknowledged it but hasn’t made any changes yet.
5. Where can I check if I’m eligible for Pension Credit or other benefits?
You can use the official Pension Credit calculator on the GOV.UK website or contact your local Citizens Advice or DWP office for help.
