Millions of pensioners across the UK will see a welcome increase in their State Pension payments from April 7, 2025, thanks to the government’s triple lock guarantee. The Department for Work and Pensions (DWP) has confirmed a 4.1% rise, helping retirees cope with the rising cost of living.
Depending on which State Pension system they fall under, pensioners will receive up to £472 extra per year, while those on the older basic State Pension will get £363 more annually.
What Is the Triple Lock System?
The triple lock is a system that ensures the State Pension increases every year based on whichever is higher of the following:
- Inflation (CPI)
- Average earnings growth
- Or a guaranteed minimum of 2.5%
For 2025, the earnings growth figure of 4.1% was the highest of the three, triggering the raise.
Despite speculation that the policy could be dropped, Secretary of State Liz Kendall confirmed the government’s full commitment, calling it an “ironclad promise” to support pensioners in retirement.
New Weekly State Pension Rates (From April 7, 2025)
Here’s how the new weekly rates look after the 4.1% increase:
New State Pension (post-April 2016 retirees):
Now £230.25 per week → An increase of £9.05/week, or £472 annually
Basic (Old) State Pension (pre-April 2016 retirees):
Now £176.45 per week → An increase of £7/week, or £363 annually
To get the full State Pension, you usually need 35 years of National Insurance contributions.
Government Response and Funding
Pensions Minister Torsten Bell said the increase was part of the government’s plan to support older citizens:
“Raising the State Pension and rescuing the NHS – these are this government’s priorities… We are improving the lives of millions of pensioners with £7.84 billion in extra State Pension funding this year.”
He also confirmed efforts to boost Pension Credit uptake and highlighted the £26 billion NHS investment, which he said had helped reduce NHS waiting lists for five months in a row.
What About Taxes?
While pensioners are getting more income, the government has frozen income tax thresholds until 2028. This is known as fiscal drag, where you could pay more tax even if the rates don’t change, simply because your income increases and crosses the fixed thresholds.
So, even though your pension has gone up, you may now pay more tax if it pushes your income into a higher tax bracket.
Thanks to the triple lock guarantee, UK pensioners will see up to £472 more per year in their State Pension from April 2025. The increase gives some relief from the rising cost of living, especially for those heavily reliant on pension income.
However, the government’s frozen tax bands mean some may end up paying more tax on that extra income. Still, with clear support for the triple lock, retirees can feel more confident about their future finances.
FAQ’s
How much will the State Pension increase in April 2025?
The State Pension will rise by 4.1%, giving an annual increase of £472 for new pensions and £363 for older pensions.
What is the triple lock system for pensions?
It guarantees yearly pension increases based on the highest of inflation, earnings growth, or 2.5%. This year, earnings growth triggered the 4.1% rise.
What is the new State Pension weekly rate from April 2025?
The full new State Pension is now £230.25 per week. For the basic State Pension, it is £176.45 per week.
Will I pay more tax on the increased pension?
Possibly. Income tax thresholds are frozen until 2028, so rising incomes may push some pensioners into a higher tax band.
Do I need to apply to get the increased State Pension?
No. If you’re already receiving the State Pension, the new rate will automatically apply to your payments from April 7, 2025.
