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A new change will be introduced from April that will benefit all state pensioners, bringing a welcome update to payments. From the start of the new tax year, pensioners will receive higher payments every four weeks from the Department for Work and Pensions (DWP).
Those on the new State Pension will see an increase of £11 per week, which equals about £44 more per month, due to the Triple Lock system. This policy raises pensions each year based on the highest of inflation, wage growth, or 2.5%. Since wage growth reached 4.8%—the highest of the three—pensioners will gain an extra £575 annually. This means weekly payments will rise from £230.25 to £241.30.
In comparison, people receiving the basic State Pension will get a smaller increase. Their weekly payments will go up by £8.45, rising from £176.45 to £184.90, which is roughly a £44 monthly boost.
The “old” State Pension applies to individuals who reached retirement age before 6 April 2016—men born before 6 April 1951 and women born before 6 April 1953.
This older system has two parts. The first is the Basic State Pension, a flat-rate payment based on National Insurance contributions. To receive the full amount, individuals typically need 30 qualifying years (reduced in 2010 from 44 years for men and 39 years for women). Those with fewer years receive a reduced amount.
The second part is the Additional State Pension, which depends on earnings throughout a person’s career. This includes schemes like SERPS (1978–2002) and the State Second Pension (from 2002). Some people opted out of these schemes into private pensions, paying lower National Insurance contributions instead.
