The Department for Work and Pensions (DWP) has confirmed that the full rate of the new State Pension will be set at £241.30 per week and remain at this level until April 2027. This amount represents a 4.8% increase from the previous rate of £230.25 per week, aligning with the rise in average earnings.
Similarly, the full basic State Pension will increase from £176.45 to £184.90 per week. Alongside these changes, the Standard Minimum Guarantee in Pension Credit will also rise by 4.8%, reaching £238.00 per week for single pensioners and £363.25 per week for couples starting in April.
Labour Party Work and Pensions Secretary Pat McFadden emphasised the government’s commitment to supporting pensioners amid global economic challenges. He said, “I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households. This government will always protect our pensioners, and that’s why we are raising the full rate of new State Pension by up to £575 this coming year.”
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Minister for Pensions Torsten Bell added that after years of work and contribution, people deserve a secure retirement. He highlighted that the government is raising State Pensions faster than prices to ensure that it remains a dependable income for millions.
In addition to the pension increases, most working-age benefits and other benefits for people below State Pension age will rise by 3.8%, providing support to millions of households. The government is also enhancing incentives to work and improve health outcomes by increasing the standard rate of Universal Credit by 6.2%, marking the first permanent, above-inflation increase. Furthermore, to address unintended incentives, a lower Universal Credit health element rate of £217.26 per month will apply to new claimants, compared to the higher rate of £429.80.
These measures form part of the government’s broader strategy to support households and ensure dignity in retirement and financial assistance for those in need.