Millions of pensioners are poised to receive a significant boost to their State Pension come April. This follows the announcement of proposed payment rates for the 2026/27 financial year by Work and Pensions Secretary Pat McFadden.
The recommended new figures for State Pension and benefits have been laid before Parliament and are due to take effect from April 6.
Through the Triple Lock system, both the New and Basic State Pensions are uprated each year based on whichever is greater among three measures: average annual wage growth between May and July (4.8%), the Consumer Prices Index inflation figure for the year to September (3.8%), or 2.5%.
According to the Daily Record, supplementary State Pension elements and postponed State Pensions rise annually in accordance with the September CPI measure (3.8%). This increase means those claiming the complete New State Pension will get £241.30 weekly, while individuals on the maximum Basic State Pension will collect £184.90 per week.
It’s important to understand that State Pension entitlement depends on a person’s National Insurance record. Roughly 35 years of contributions are necessary to secure the full New State Pension, though this figure can differ for those who were “contracted out”.
The full New State Pension is due to increase by roughly £574 to £12,547 in the upcoming financial year.
However, this rise leaves a slim margin of just £36 before hitting the Personal Allowance income threshold of £12,570, potentially leading to more pensioners with any extra income paying tax in retirement.
Chancellor Rachel Reeves recently confirmed that new measures will be put in place to ensure that pensioners whose sole income is the State Pension will not be taxed before April 2030.
This follows Ms Reeves’ declaration during the Autumn Budget that the Personal Allowance will remain frozen at £12,570 until April 2031, extending the original timeline by three years.
New State Pension payment rates for 2026/27
Full New State Pension
- Weekly: £241.30 (up from £230.25)
- Four-weekly pay period: £965.20
- Annual amount: £12,547
Full Basic State Pension
- Weekly: £184.90 (up from £176.45)
- Four-weekly pay period: £739.60
- Annual amount: £9,614
Other State Pension rates
- Category B (lower) Basic State Pension – spouse or civil Partner’s insurance: £110.75 (up from £105.70)
- Category C or D – non-contributory: £110.75 (up from £105.70)
Complete details on Additional State Pension, Widows Pension, increments and Invalidity Allowance can be found on GOV.UK.
New Pension Credit rates
Standard minimum guarantee
- Single: £238.00 (up from £227.10)
- Couple: £363.25 (up from £346.60)
Additional amount for severe disability
- Single: £86.05 (up from £82.90)
- Couple (one qualifies): £86.05 (increased from £82.90)
- Couple (both qualify): £172.10 (raised from £165.75)
- Additional amount for carers: £48.15 (previously £46.40)
