From April 2025, all UK state pensioners will receive a 4.1% increase in their payments, thanks to the Triple Lock system, which ensures the State Pension rises each year by whichever is higher: inflation, average wage growth, or a 2.5% minimum.
While this is welcome news for many, pensioners who retired before April 6, 2016, and are on the old State Pension are still missing out on up to £7,561 per year compared to those on the new State Pension.
This guide explains how much your State Pension will rise, why some pensioners receive more than others, and how older pensioners can take steps to increase their income and close the gap.
State Pension Increase from April 2025
The State Pension is split into two types, depending on when you reached retirement age:
Old State Pension (for those who retired before April 6, 2016):
- Current weekly rate: £169.50
- New weekly rate (from April 2025): £176.45
- Annual total: £9,175.40
- New State Pension (for those who retired after April 6, 2016):
- Current weekly rate: £221.20
- New weekly rate (from April 2025): £230.25
- Annual total: £11,973
- Annual Difference: £11,973 – £9,175.40 = £2,797.60
But if you include potential top-ups and benefits that only new pensioners may access more easily, the financial difference can reach up to £7,561.75 per year, especially for those who do not claim additional help.
Why the Gap Exists Between Old and New State Pensions
The New State Pension was introduced in 2016 to simplify the system and provide a clearer link between National Insurance contributions and pension income. However, people who retired before this date remain on the old system, which often results in lower payments unless they built up substantial Additional State Pension (SERPS or S2P).
To get the full New State Pension, you need 35 years of NI contributions. For the old system, 30 years was usually enough, but top-up options varied, making it harder for some pensioners to maximise their entitlements.
How Older Pensioners Can Boost Their Income
If you’re receiving the old State Pension, there are several ways you may be able to increase your income and close the gap with the New State Pension rate:
1. Claim Pension Credit
Pension Credit is a benefit designed to top up the income of those on low pensions.
From April 2025, the rates are:
- £227.10 per week for a single pensioner
- £346.60 per week for a couple
If you qualify, Pension Credit could raise your annual income to £11,809.20, bringing it within £163.80 of the full New State Pension.
You may also qualify for:
- Free TV licence (if over 75)
- Free NHS dental treatment and prescriptions
- Council Tax reductions
- Help with housing costs
2. Check and Top Up Your National Insurance Record
If you’re not yet at State Pension age or retired recently, you can check your NI contributions online via the HMRC website.
You may be able to buy voluntary NI contributions to fill in gaps and increase your pension entitlement.
3. Apply for Additional Benefits
Thousands of pensioners miss out on support they’re entitled to, including:
- Housing Benefit
- Council Tax Reduction
- Winter Fuel Payment
- Cold Weather Payment (if eligible)
- Attendance Allowance (for those with disabilities)
- Make sure to check with your local authority or visit GOV.UK to see what else you can claim.
How to Apply for Pension Credit
If your weekly income is below £218, you should check if you’re eligible for Pension Credit.
Ways to apply:
- Call the Pension Service Helpline: 0800 99 1234
- Apply online: via the official GOV.UK website
- You’ll need your National Insurance number, income details, and bank account information.
The 4.1% State Pension increase from April 2025 will bring much-needed relief to millions of UK pensioners, but many older retirees are still left behind. If you retired before 2016, you may be losing out on up to £7,561 per year compared to those on the newer system.
However, Pension Credit and other benefits can help bridge the gap. With eligibility often based on income and circumstances, it’s essential to check what you’re entitled to. Taking action now could boost your income significantly and help ensure a more secure and dignified retirement.
FAQ’s
How much is the UK State Pension increasing in April 2025?
From April 2025, the New State Pension rises to £230.25 per week, and the Basic (old) State Pension increases to £176.45 per week due to the 4.1% Triple Lock increase.
Why is there a gap between old and new State Pension amounts?
The New State Pension system introduced in 2016 offers higher weekly payments. Pensioners who retired before 2016 remain on the old system, which has lower base payments.
How much less do pensioners on the old system receive?
In 2025, pensioners on the old system receive up to £7,561 less per year compared to those on the full New State Pension, depending on benefits claimed.
What is Pension Credit and who can claim it?
Pension Credit is a benefit for low-income pensioners. In April 2025, it increases to £227.10 per week for singles and £346.60 for couples, helping to top up your income.
How can I check or improve my State Pension entitlement?
You can log into your HMRC account to check your National Insurance record. You may be able to buy missing years or apply for Pension Credit and other benefits.
