The UK government boosted the state pension from 06 April 2025, thanks to the Triple Lock rule. Under the Triple Lock rule, the state pension will increase annually depending on the three factors – average wage growth, inflation, or a 2.5% guaranteed boost.
The Labour government has announced a boost in the basic and new State Pensions by 4.1% above the current level of inflation rate. This boost also comes along with increasing the Working Age benefit, National Minimum Wage, and National Living Wage, which will benefit millions of eligible workers.
According to the UK government, with this boost, the million pensioners will receive up to £470 additional State Pension in their pension amount this year. The Work and Pensions Secretary Liz Kendall gives pensioners the security they need when they retire. The taxes for the pensioners will also be affected through the State Pension.
| UK State Pension Boost Rate | By 4.1% |
| Increase in Pension Amount | New State Pension: £230.25 per weekBasic State Pension: £169.50 per week |
| Annual Increment | £470 a year (new State pension)£360 a year (Basic state pension) |
| Pension Credit | £227.10 (individual)£346.60 (for couples) |
| Payment Date | Every four weeks |
| Who qualifies? | Reaches state pension age at 66 years oldHave 10 qualifying years on your National Insurance |
| Official Website | https://www.gov.uk/state-pension |
State Pension Increase
With the State Pension increase effective from 07 April 2025, the pensioners can see the following increase of 4.1% increase in their State Pension:
- Under the new State Pension, the full rate for pensioners is £230.25 this fiscal year, from the initial payment of £221.20.
- Under the Old State Pension, the pension amount for the Category A or B basic pension is boosted to £176.45 from £169.50.
- Under the Old State Pension, the Category B (lower basic pension) – spouse or civil partner’s insurance increased to £105.70 from £101.55.
- Under the Old State Pension, the category C or D (non-contributory) was boosted to £10.5.70 from £101.55.
- Under the State Old Pension, the maximum additional pension (own + inherited) is boosted to £222.10 from £218.39.
Who will receive it?
According to the UK government changes, UK citizens qualify for the state pension when they meet the following requirements:
- The men born before 06 April 1951 and women born before 06 April 1953 will receive the state pension.
- If you are born before the above-mentioned age, these rules do not apply, and you will get the basic state pension, or you may also qualify for the additional state pension.
- UK citizens qualify for the State Pension when they have qualifying years of National Insurance. The qualifying year is one when you did at least one thing – worked and paid National insurance; paid voluntary National Insurance Contributions; or got National insurance credits (when you were sick, unemployed, a parent, or a carer)
- UK citizens receive the state pension when they reach the age of 66.
- People born on or after 05 April 1960, the state pension will start increasing at age 67.
When will you receive it?
The UK state pension is paid to the account of pensioners every four weeks. The pension disbursement depends on the last 2 digits of the National Insurance Number. The first pension payment will be processed within five weeks after the date you choose.
According to the last digit of the National Insurance Number, the pensioners can check their payment day every four weeks, depending on their first payment date:
| Last 2 digits of National Insurance Number | Payment Day of the week |
| 00 to 19 | Monday |
| 20 to 39 | Tuesday |
| 40 to 59 | Wednesday |
| 60 to 79 | Thursday |
| 80 to 99 | Friday |
The payment date may be changed if the payment day falls on a bank holiday, so do check your bank account when your payment date is close.
Taxes on State Pension
Since the Labour government announced the increase in the State pension, pensioners are wondering if they may have to pay taxes on their pension as it will reach close to the £12,570 tax-free threshold.
According to Britain’s complex pension system, over 2.6 million people will receive the state pension, which may be above the personal allowance limit, leading many pensioners into the tax bracket. The 4.1% rise may drag 650,000 pensioners over the threshold in 2025-26.
Under the deep freeze and triple lock, around 2.5 million pensioners will be pushed into the tax slab, however, the government has ensured they may bring changes that will improve the lives of pensioners.
With the State Pension boost, a £470 extra pension in the new State Pension, whereas £360 a year in basic pension a year will get into the pocket of pensioners, along with an increase in Pension Credit. So, UK pensioners, be ready to receive the boost to up State Pension from this April 2025.