The Department for Work and Pensions (DWP) has confirmed that the Additional State Pension rates will increase to £230.54 to £922 per month for the 2026/27 financial year. This extra payment is added automatically to your basic State Pension if you qualify and have not contracted out.
The Additional State Pension is designed to supplement the basic State Pension, reflecting your National Insurance contributions, earnings, and any pension top-ups you may have made. Eligibility depends on several factors including how many years you contributed to National Insurance, whether you were part of a contracted-out pension scheme, and if you topped up your pension between 12 October 2015 and 5 April 2017.
If you reached State Pension age before 6 April 2016, you will receive any Additional State Pension you’re entitled to automatically—no separate application is necessary.
READ MORE: Birmingham Doctor Suspended for Repeatedly Abusing Partner
This additional pension consists of three components: the State Second Pension, the State Earnings-Related Pension Scheme (SERPS), and the state pension top-up. Depending on your employment record, you might have contributed to one or more of these schemes.
From April 2026, the Additional State Pension will increase in line with inflation by 3.8%. The DWP advises that contracting out of the Additional State Pension was only possible if your employer offered a contracted-out workplace pension scheme. If you were contracted out, your National Insurance contributions reverted to the standard rate after 6 April 2016, which means you can no longer contract out.
If you were part of a contracted-out pension scheme, the extra pension benefits you received are typically comparable to or greater than what you would have earned through the Additional State Pension alone.