How much will state pension payments rise by next year? DWP benefit increase explained

Millions of older Brits are set to get a pay rise next year as payments could increase by up to £461.

Under the triple lock promise, state pension payments look likely to rise by 4% next April. The triple lock sees state payments rise by whatever is highest out of the Consumer Price Index (CPI) for September, the average growth for wages between May and July, or 2.5%.

Earlier this month, it was confirmed that the wage growth rate sat at 4% - this means state pension payments will likely rise by this amount as inflation looks set to remain lower than this. September's inflation figure which will be published on October 16. currently sits at 2.2% so unless this rises drastically, it will likely be wage growth used for the rise next year. Any rises to the state pensions will be officially confirmed in Labour's first Autumn on October 30.

The state pension is a payment made by the Department for Work and Pensions (DWP) and there are two different types. These are the "new style" state pension and the "old basic style" state pension. If you are a man and born on or after April 6, 1951, or a woman born on or after April 6, 1953, then you’ll claim the new state pension. Born before, you will get the old.

READ MORE:

READ MORE:

Old state pension - £353 rise in 2025

More Brits claim the old state pension compared to the new with 9.3million Brits receiving payments each month. People who retired before April 2016 get these payments. According to Age UK, the old State Pension includes two parts and these are:

• A basic amount based on your previous National Insurance contributions
• An additional amount which is also based on your National Insurance contributions – but this takes into account your earnings and whether you claimed benefits too

You need to have at least 30 years of National Insurance contributions or credit to receive the full amount. However, if you are a woman born before 6 April 1950 or a man born before 6 April 1945, you may need more years.

Age UK says if you don't have all the qualifying years, you'll be paid a proportion of the full amount based on the number of years of National Insurance contributions that you do have. For example, if you’ve paid 15 years of contributions when you claim, you’re entitled to 15/30th of the full amount – or £84.75 a week currently. If you do not receive the full amount, this still goes up each April.

Weekly

• Current: £169.50
• April 2025: £176.28
• Increase: £6.78

Annually

• Now: £8,844.27
• April 2025:£9,198.04
• Increase: £353.77

New state pension - £461 rise in 2025

There are currently 3.4million pensioners claiming the new style state pension. Only a fraction of older Brits receive this state pension with one in four getting the new one. Once again, you get the full new state pension if you have 30 years of National Insurance contributions. According to Age UK, if you've already built up contributions under the pre-2016 system, you’ll be given a "starting amount" which is whatever's highest out of the following:

• The amount you would have received under the pre-2016 system, including basic and additional pension
• The amount you would get if the new State Pension had been in place at the start of your working life

If your "starting amount" is more than the full amount of the new state pension, then any amount over that will be protected and paid on top of the full amount when you start to claim. If your starting amount is less than the full amount of the new State Pension, then you may be able to build up a higher level through contributions and credits you make between April 6 2016 and when you reach state pension age.

So, your state pension amount will be the higher starting amount figure plus the value of any qualifying years you had from April 6 2016 onwards, up to the full rate of the new State Pension.

Weekly

• Current: £221.20
• April 2025: £230.05
• Increase: £8.85

Annually

• Now: £11,541.90
• April 2025: £12,003.68
• Increase: £461.78

READ MORE: