The UK Government has officially confirmed the increase in payments for those receiving benefits and the state pension in 2025, marking an important shift for many households.
According to the Department for Work and Pensions (DWP), this rise will impact a range of financial support programs, including the Universal Credit, Disability Living Allowance, Carer’s Allowance, and Child Benefits.
State Pension Rise in 2025
As part of the government’s commitment to the pensions triple lock, state pensioners are set to receive an increase in their payments.
The triple lock ensures that state pensions will increase each year by the highest of either inflation, average earnings growth, or 2.5%. In 2025, this will result in an overall 4.1% increase for both Basic and New State Pension recipients.
A spokesperson for the DWP reinforced the government’s commitment to this measure, saying that the increase will provide pensioners with the financial certainty and security needed for their retirement years.
Work and Pensions Secretary Liz Kendall emphasized that the government’s plan focuses on raising household incomes and improving financial stability for pensioners across the country.
Impact on State Pension Types
How much extra money you will receive in 2025 depends on the type of State Pension you are entitled to. There are two main types:
New State Pension
This applies to individuals born on or after April 6, 1953. Those who fall into this category will see their weekly payments increase from £221.20 to £230.25, which is a £470 increase per year.
Basic State Pension
Those born before April 6, 1953 are eligible for the Basic State Pension. Their weekly payments will rise from £169.50 to £176.45, equating to an additional £360 annually.
DWP’s Plan for Change and Financial Support
The government’s announcement is part of a broader Plan for Change aimed at boosting financial security for pensioners. Liz Kendall pointed out that the increase is part of a larger effort to ensure more money is put into people’s pockets, improving household incomes across the country.
This increase will also provide pensioners with greater financial independence and ensure a higher standard of living during retirement.
2025 State Pension Increases
| Pension Type | Weekly Payment (2024) | Weekly Payment (2025) | Annual Increase |
|---|---|---|---|
| Basic State Pension | £169.50 | £176.45 | £360 |
| New State Pension | £221.20 | £230.25 | £470 |
In 2025, pensioners will see an increase in their payments as part of the government’s ongoing commitment to improving financial security for the elderly.
With a 4.1% increase set for both the Basic and New State Pension, this move ensures that many households will benefit from a stronger financial position, providing the much-needed support in retirement.
The increase, combined with the pensions triple lock, highlights the government’s efforts to safeguard pensioner incomes and improve financial stability across the UK.
FAQs
Who qualifies for the new state pension in 2025?
Individuals born on or after April 6, 1953, will qualify for the New State Pension.
How much will my state pension rise in 2025?
- Basic State Pension will rise by £360 annually.
- New State Pension will rise by £470 annually.
What is the pensions triple lock?
The triple lock ensures that the state pension increases every year by the highest of inflation, average earnings growth, or 2.5%.
What other benefits will see an increase in 2025?
Aside from state pensions, other benefits like Universal Credit, Disability Living Allowance, Carer’s Allowance, and Child Benefits will also rise.