Starting April 2025, the Department for Work and Pensions (DWP) will make nine important changes to the UK State Pension system. These changes affect the new State Pension, basic State Pension, and other pension parts like Serps and inherited pensions. Millions of pensioners will see their payments updated, helping them manage rising living costs. Here’s what you need to know.
1. New State Pension Increase
From April 2025, the new State Pension will rise to £230.25 per week, up from £221.20. This 4.1% increase means an extra £470 per year, making the total annual pension about £11,970.
Who Qualifies for the New State Pension?
Men born on or after 6 April 1951 and women born on or after 6 April 1953 qualify. To get the full pension, you need 35 years of National Insurance contributions. At least 10 qualifying years are needed for any pension, and you can make voluntary payments to fill gaps in your record.
2. Basic State Pension Increase
If you reached pension age before April 2016, your basic State Pension will go up from £169.50 to £176.45 per week (also a 4.1% rise). This may be combined with additional amounts from extra State Pension, State Second Pension (S2P), or Serps.
3. How the Triple Lock System Works
The triple lock ensures the State Pension increases each year by the highest of these: inflation (CPI), average earnings growth, or 2.5%. For 2025, wage growth set the rise at 4.1%. The government plans to keep this system until at least the end of the current Parliament.
4. Additional, Serps, and S2P Increase
If you qualify for more than the basic pension, your extra payments from Serps, State Second Pension, or additional pension will increase by 1.7% in April 2025.
5. Pension Age Set to Rise
Currently, the pension age is 66 for men and women born between 6 October 1954 and 5 April 1960. Experts predict the pension age may rise to 71 by 2050 to keep the pension system sustainable.
6. Higher Payments for Deferring Your Pension
If you delay claiming your pension, you earn extra payments. The increase for deferral will go up by 1.7%. You gain about 1% more for every nine weeks you wait, or around 5.8% extra per year.
7. Inherited State Pension Increases
Inherited pensions will increase as well:
Basic State Pension (pre-2016) → 4.1% rise
New State Pension (post-2016) → 1.7% rise
8. Married Women’s State Pension Increase
Spouses who retired with a small pension before April 2016 get 60% of their partner’s basic pension. The ‘Category B’ pension will rise 4.1% to £105.70 weekly. Those over 80 with ‘Category D’ pension also get a 4.1% rise, with the extra 25p per week staying the same.
9. Graduated Retirement Benefit Increase
The Graduated Retirement Benefit, for people who paid between 1961 and 1975, will increase by 1.7%.
The April 2025 pension increases will give many retirees a financial boost to help with rising living costs. The triple lock system guarantees annual pension growth, but with the state pension age expected to rise further in the future, it’s wise to plan ahead. Checking your National Insurance record, making voluntary contributions, or deferring your pension can help you get the most from your retirement income.
What is the new State Pension rate from April 2025?
The new State Pension will increase to £230.25 per week starting April 2025.
Who qualifies for the new State Pension?
Men born on or after 6 April 1951 and women born on or after 6 April 1953, with at least 10 years of National Insurance contributions.
What is the triple lock system?
The triple lock ensures the State Pension rises each year by the highest of inflation, average earnings growth, or 2.5%.
Will the State Pension age change in the future?
Yes, the State Pension age may rise to 71 by 2050 according to expert predictions.
How does deferring the State Pension work?
Deferring your pension increases payments by about 1% every nine weeks, adding roughly 5.8% per year.
What increases will apply to inherited pensions?
Inherited basic State Pensions will increase by 4.1%, and new State Pensions by 1.7% from April 2025.
I was born 13 o8 1949