State pensioners across the UK will be given a £241 weekly payment from next April as new State Pension rates have been confirmed.
Chancellor Rachel Reeves delivered the autumn Budget on Wednesday, November 26, outlining the government’s tax, spending and borrowing plans for the year ahead. The government has now confirmed its commitment to the pension triple lock which means that the State Pension will rise by 4.8% from April, in line with average wage growth. State Pension rates ae increased at the start of every new tax year and the amount it goes up is determined by whichever is the highest out of three factors – known as the ‘triple lock’. These include the consumer price index (CPI) measure of inflation (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%.
Of these three figures, average wage growth was the highest at 4.8%, above inflation at 3.8% and the 2.5% minimum floor for increases.
The 4.8% increase means that pensioners who receive the full new State Pension will get £241.30 per week from next April, up from the current rate of £230.25. Over a full year, this amounts to a maximum of £12,547.60 in pension payments.
Meanwhile, older pensioners on the full basic State Pension will get £184.90 per week from April 2026, up from the current rate of £176.45. Over a full year, this amounts to a maximum of £9,614.80 in pension payments.
Commenting on the changes, HM Treasury said: “Thanks to our commitment to the pension Triple Lock for this parliament, pensioners on the full new State Pension across the UK are set to receive an extra £575 a year, which they’ll start seeing from April 2026.”
Of course, whether you get the full rate depends on how many qualifying National Insurance years you have, so some pensioners may get less than £241.40 or £184.90 per week in 2026.
And while the increase will give pensioners a welcome dose of extra cash, the uplift will bring some closer to the point where they could be liable to pay income tax.
Lucie Spencer, Partner in Financial Planning at wealth management firm Evelyn Partners, said: “As for income tax, the personal allowance freeze at £12,570 – which was also extended to 2029/30 today – does mean more state pensions will be taxed and that will accelerate in 2027/28 and subsequent years. You won’t find many pensioners complaining about triple lock increases because of this, although plenty would argue that the personal allowance should be raised to remove the anomaly.
“What concerns most people is how it will be taxed – at source or will state pensioners have to tackle the quite daunting self-assessment process? Currently the state pension will always be paid gross.
“If you have other PAYE income (e.g. from a private pension or employment), then HMRC will usually adjust the tax code on that income so that tax due on your state pension is collected through PAYE.
“If the state pension is your only income and exceeds the Personal Allowance, then HMRC will usually issue a Simple Assessment after the tax year ends, telling you how much tax you owe and how to pay it. If you have other income not taxed via PAYE (e.g. rental income, or from self-employment), then you may need to complete a self-assessment tax return.”
