The annual increase in State Pensions and benefits, managed by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC), officially began on April 7, 2025.
This yearly adjustment ensures that pensioners receive the most up-to-date rates, providing them with increased support to cover rising living costs.
Claimants will typically receive letters from these departments detailing their new payment rates. However, some pensioners may find themselves waiting for this letter and may worry about missing the updated rates.
It’s essential to remember that these letters are for informational purposes only and do not affect the payments themselves, as the uprating is applied automatically.
If you haven’t received your State Pension uprating letter yet, don’t panic; it should arrive by the end of the month. In case it doesn’t, it’s a good idea to check if the DWP has your current contact details, especially if you’ve changed addresses since the previous notice.
State Pension Payment Rates for 2025/26
From April 7, 2025, both the New and Basic State Pension will see a 4.1% increase, with an additional 1.7% rise for those who have delayed claiming. Here are the new payment rates:
| Pension Type | Weekly Payment | Four-weekly Payment | Annual Payment |
|---|---|---|---|
| Full New State Pension | £230.25 (from £221.20) | £921 (from £884.80) | £11,973 (from £11,502) |
| Full Basic State Pension | £176.45 (from £169.50) | £705.80 (from £678) | £9,175 (from £8,814) |
Pension Credit – A Crucial Benefit
The DWP has begun sending letters to pensioners that not only outline their new pension rates but also highlight the Pension Credit, which is an often-overlooked benefit. Pension Credit could increase annual incomes by up to £4,300 for eligible individuals during the 2025/26 financial year.
The DWP encourages all pensioners, both single and married, to consider claiming Pension Credit, as it could offer vital extra support to counteract rising living costs. This means-tested benefit is available to pensioners on a low income, even if they own their own home or have savings.
Who Should Check for Pension Credit Eligibility?
It’s a common misconception that owning a home or having savings excludes individuals from claiming Pension Credit.
In fact, it can help with housing costs, heating bills, and Council Tax. Even a small weekly award of £1 can make recipients eligible for additional benefits.
Checking Eligibility for Pension Credit
To determine whether you’re eligible for Pension Credit, you can use the Pension Credit calculator on the official GOV.UK website. Alternatively, pensioners can call the Pension Credit helpline at 0800 99 1234 (open Monday to Friday, 8am to 6pm).
Additional Support for Pension Credit Recipients
Those who qualify for Pension Credit can also access a range of other financial support options, such as:
- Warm Home Discount Scheme for heating costs
- Winter Fuel Payments and Pension Age Winter Heating Payment
- Housing Benefit if renting a property
- Council Tax discounts
- Help with NHS dental treatment, glasses, and transport costs
- Support for Mortgage Interest if owning property
- Free TV license for those over 75
- Royal Mail redirection discount when moving homes
How to Apply for Pension Credit
Pensioners can apply for Pension Credit up to four months before reaching State Pension age. Claims can be backdated for up to three months, so eligible individuals can receive payments for that period if they qualify.
Documents Needed for Application
- National Insurance number
- Details of income, savings, and investments
- Bank account details (if applying by phone or post)
Applying Online
If you’ve already claimed your State Pension and do not have children or young dependents, you can apply online. For assistance, call the Pension Credit helpline or use the GOV.UK Pension Credit calculator to estimate your potential benefits.
With the 2025 State Pension uprating, pensioners are set to receive vital increases in their income, while the promotion of Pension Credit ensures that those on low incomes get the extra support they need.
By staying informed and checking eligibility for Pension Credit, pensioners can secure additional benefits that will significantly help in managing the increasing cost of living.
Always make sure your contact details are up-to-date with the DWP, and don’t hesitate to reach out for support through the helplines and online services available.
FAQs
How much will my State Pension increase in 2025?
The New State Pension will rise to £230.25 per week, and the Basic State Pension will rise to £176.45 per week starting April 7, 2025.
Can I receive both State Pension and Pension Credit?
Yes, pensioners can receive both, and Pension Credit is designed to supplement low incomes, offering up to £4,300 extra annually.
What benefits can I access if I qualify for Pension Credit?
Eligible pensioners can receive additional support like housing benefits, Council Tax discounts, and free TV licenses, among others.