DWP announces new and old State Pension rates for 2025 with £471 hike

A £471 pay hike is coming for state pensioners after it emerged the state pension was being hiked by that amount next April. The Department for Work and Pensions (DWP) has confirmed its payment rates for 2024 and 2025, with April making an uplift.

Liz Kendall, the Labour Party MP, has made a written statement in the Commons over the lift - which comes thanks to the Triple Lock. She said: "I have concluded my statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The new rates will apply in the tax year 2025/26 and will mainly come into effect from 7 April 2025."

"Although not covered by my statutory review of state pension and benefit rates, I can also inform the House that local housing allowance rates for 2025/26 will be maintained at the 2024/25 levels, following their increase in April 2024; and that the benefit cap has not been reviewed for 2025/26 and will also be maintained at the 2024/25 levels," she added.

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State Pension

New State Pension

• Full rate: £230.25 (from £221.20)

Old/Basic State Pension

• Category A or B Basic State Pension: £176.45 (from £169.50)
• Category B (lower) Basic State Pension - spouse or civil Partner's insurance: £105.70 (from £101.55)
• Category C or D - non-contributory: £105.70 (from £101.55)

Full details on Additional State Pension, Widows Pension, increments and Invalidity Allowance can be found on GOV.UK. This publication lists the benefit rates and pension rates for 2025 to 2026 as set out in the written ministerial statement made by the Secretary of State for Work and Pensions on 30 October 2024.

Ms Kendall said: "I am pleased to announce that the basic and new state pensions, and the standard minimum guarantee in pension credit, will be increased by 4.1%, in line with the increase in average weekly earnings in the year to May-July 2024.

"This demonstrates our commitment to supporting pensioners, protecting the triple lock, which benefits over 12 million pensioners. From April, the full yearly rate of the new state pension will increase by over £470. Other state pension and benefit rates covered by my statutory review will be increased by 1.7%, in line with the increase in the consumer prices index in the year to September 2024.

"This includes universal credit and other benefits and statutory payments linked to participation in the labour market; and additional state pension and pension credit elements other than the standard minimum guarantee.

"These increases will apply across Great Britain."