From April 2025, many UK pensioners will see their State Pension rise to £11,974 per year under the Triple Lock system. While this increase is welcome for some, millions of older pensioners will receive a much smaller increase, and some parts of their pensions may not even keep up with inflation.
This gap is due to complex pension rules, which different governments have failed to fix — and there’s no clear plan from Labour to address it either.
What Is the Triple Lock?
The Triple Lock is a UK government guarantee that the State Pension will rise each year by the highest of:
- Inflation
- Wage (earnings) growth
- 2.5% minimum
In April 2025, the rise is based on 4.1% wage growth, giving pensioners a decent boost. But it only applies to certain parts of the pension.
Who Gets What? April 2025 Pension Amounts
New State Pension
(For people who retired after April 6, 2016)
- Before: £11,502 per year
- After: £11,974 per year (4.1% increase)
- Claimants: 4.4 million
Basic State Pension
(For those who retired before April 6, 2016)
- Before: £8,814 per year
- After: £9,175 per year (4.1% increase)
- Claimants: 8.6 million
Two Big Issues Pensioners Face
1. The Pension Gap Is Growing
Although both pensions get a 4.1% increase, the new pension starts at a higher amount, so the gap keeps widening.
From April 2025, the difference between the two pensions will be £2,799 per year.
2. Older Pension Elements Don’t Get the Full Rise
Older pensioners may also get additional pension elements, like:
- Serps (State Earnings-Related Pension)
- S2P (State Second Pension)
- Graduated Pension
- Protected Payments
But these parts only rise with inflation — and in September 2023, inflation was just 1.7%, meaning a real-term loss when prices are rising faster.
Why This Matters
- Men who built up more from Serps/S2P still receive higher payments, but the smaller increase matters less.
- Women, who had career breaks for family care, often built lower pensions and now struggle more with smaller rises.
- Inflation is expected to hit 3.7%, meaning many pensioners will feel worse off even after a rise.
Expert Concerns
- Stephen Lowe (Just Group) called the pension system “impossible to understand” and said it deepens inequality between old and new pensioners.
- Andrew Tully (Nucleus Financial) said many pensioners will feel worse off, especially after losing support like the Winter Fuel Payment.
Until everyone moves to the new pension system (likely by the 2040s), many older pensioners will feel left behind as their income falls short of rising costs.
While the Triple Lock gives a £470 boost to the State Pension from April 2025, it also highlights growing inequality between pensioners. Those on the new system benefit more, while older pensioners, especially women, face real struggles as their income increases less than inflation. Unless the rules change, this divide will only grow over time.
FAQ’s
How much is the State Pension increasing in April 2025?
The full new State Pension will increase to £11,974 per year from April 2025, based on a 4.1% rise under the Triple Lock system.
What is the difference between the new and basic State Pension?
The new State Pension is for those who retired after April 6, 2016, and is fully protected by the Triple Lock. The basic State Pension is lower and applies to older retirees.
Why are some parts of the pension increasing less?
Additional elements like Serps and S2P only rise with inflation, not earnings growth. This leads to a smaller increase compared to the full State Pension.
Will inflation reduce the value of pension increases?
Yes. If inflation is higher than the increase, the real value of the pension goes down, especially for parts that are not covered by the Triple Lock.
When will all pensioners be on the new State Pension?
It is expected that by the 2040s, all pensioners will be on the new State Pension system, closing the gap between old and new schemes.
