Pension payments are set to rise in 2025, with the new amount confirmed by the DWP, benefiting millions of pensioners across the country
London: The DWP recently confirmed that pension payments will see a boost in 2025. This was announced by Chancellor Rachel Reeves during the autumn budget. She reassured everyone that the government is sticking to the pension triple lock commitment.
The triple lock is a safety net that ensures pensions increase based on average earnings, inflation, or a minimum of 2.5%. Whichever is higher, that’s what pensioners will get.
Reeves mentioned that while working-age benefits will only rise by 1.7%, both the basic and new state pensions will jump by 4.1% in 2025-26. This means over 12 million pensioners could see an increase of up to £470 next year.
Starting in April, Pension Credit will also rise. The Chancellor noted that the standard minimum guarantee for Pension Credit will go up by 4.1%, from about £11,400 to around £11,850 for single pensioners.
In a helpful move, the DWP is sending letters to every pensioner this year. If they read it carefully, they might find they can get up to £4,000 more in support.
Before the payment increase on April 7, the DWP will reach out to the 12.9 million people currently claiming the State Pension. This includes 4.1 million on the New State Pension and 8.8 million on the Basic State Pension.
Both pensions will rise by 4.1% in April, thanks to the earnings growth measure of the Triple Lock. However, some other DWP benefits for pensioners will only increase by 1.7%, similar to working-age benefits.
Pensioners are encouraged to check their payments and read the leaflet that comes with the letter. If eligible, they could boost their annual income by an average of £4,200.
This is a great reminder to claim Pension Credit, which is super important now. It opens the door to other means-tested payments, like the annual Winter Fuel Payment and free TV licenses.
Pension Credit is often under-claimed, but it’s designed to help older folks on low incomes, whether they’re single or in a couple. To qualify, you need to live in England, Scotland, or Wales and have reached State Pension age.
If you’re single, your weekly income should be less than £218.15, or £332.95 if you have a partner. Even if your income is higher, you might still qualify if you have a disability, care for someone, or have certain housing costs.
It’s worth noting that new rules mean both partners in a couple must be over State Pension age to apply. But if you’re already receiving Pension Credit under the old rules, you won’t lose it unless your situation changes.
