The beginning of the new financial year on April 6 will introduce several significant changes for those collecting state pension payments. Pensions Minister Torsten Bell highlighted the Government’s aim to deliver ‘financial security and dignity’ for pensioners through these modifications and provisions.

In response to a Parliamentary question regarding the DWP’s strategy to tackle pensioner poverty, the Labour MP stated: “From April 6, both the basic and new State Pensions will increase by 4.8 percent, benefitting over 12 million pensioners by up to £575. Our commitment to maintain the Triple Lock throughout this Parliament – helping to raise the value of the State Pension over time – will see pensioners’ yearly incomes rising by up to £2,100.”

The Triple Lock is the system that raises state pension rates annually by whichever is highest of three measures:

• Wage growth
• Inflation
• 2.5 percent

This year, state pension rates are climbing by 4.8 percent in accordance with UK wage growth. This will push the full new state pension weekly rate from £230.25 to £241.30, while the full basic state pension will climb from £176.45 to £184.90 per week.

The standard minimum guarantee for Pension Credit will similarly rise by 4.8 per cent, lifting payments to £238 a week for a single pensioner and £363.25 a week for a couple. The minister described this benefit as a “vital financial safety net”.

He highlighted: “Receipt of Pension Credit also opens the door to a whole range of additional support, which is why maximising Pension Credit take-up is a key departmental priority. We have been running the biggest campaign to date encouraging pensioners and their families to check their eligibility and to apply.”

The MP also drew attention to assistance available through Housing Benefit and the newly established Crisis and Resilience Fund, designed to support pensioners and others facing financial hardship.

As of February 2025, 4.7 million people are in receipt of the new state pension. However, only roughly half receive the full amount. To qualify for the full new state pension, a minimum of 35 qualifying years is required.

These are years during which you paid National Insurance contributions, purchased voluntary contributions, or received National Insurance credits. If your National Insurance record shows fewer than 35 years but more than 10, you’ll receive a proportion of the state pension rate.

As of May 2024, the average weekly payment actually received by those on the new state pension ranged from £205 to £209.49 for women and men respectively. By comparison, the full new state pension is worth £230.25 per week prior to the April 6 increase.

Those in receipt of the full new state pension face a further potential concern, as the April 6 rise will bring their annual income perilously close to their personal allowance — the threshold at which earnings become subject to income tax.

Chancellor Rachel Reeves has guaranteed that those whose only source of income is the state pension will not be liable for income tax, even if it exceeds the threshold next April. However, earning just over £50 a year from additional sources such as savings or employment could be sufficient to trigger a bill from HMRC.