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DWP to Send Letters Announcing Pension and Benefit Increases to Retirees

The Department for Work and Pensions (DWP) will soon send letters to all individuals receiving the state pension, Pension Credit, or Attendance Allowance, informing them of upcoming payment increases effective from April 2026.

If you and your partner are of pension age, you may be eligible for additional support if you have a low income, limited savings, or health conditions or disabilities affecting your daily life.

Many retirees do not claim all the benefits they qualify for due to lack of awareness about available benefits, eligibility criteria, or concerns about maintaining their claims.

The state pension will be increased by 4.8% in April 2026. The full new State Pension rate for those reaching pension age after April 6, 2016, will rise to £241.30 per week, up from £230.25 in 2025/26. The basic State Pension rate will increase to £184.90 per week from £176.45.

In addition to the state pension, other benefits such as Pension Credit and Attendance Allowance will also see increases. Inflation-linked benefits and tax credits are set to rise by 3.8%, as announced by the Labour Party government.

Pension Credit will increase to £238 per week for single claimants and £363 for couples, up from £227 and £346 respectively. Increases are also planned for severely disabled retirees and carers receiving additional support.

Each year, the government reviews benefit levels to ensure they keep pace with inflation, typically measured by the annual inflation rate up to September. This year, that inflation measure stands at 3.8%, prompting these benefit increases.

The DWP will contact claimants ahead of these changes to keep them informed.

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