The DWP state pension increase is set to deliver a larger-than-expected rise next year after new data from the Office for National Statistics (ONS) revised average earnings growth from 4.7% to 4.8%.
This means the UK state pension will increase by 4.8% from April 2026, offering thousands of pensioners higher payments to match earnings growth.Under the triple lock guarantee, this boost will see retirees receiving hundreds of pounds more annually, strengthening financial stability for millions across the UK.
According to the DWP, the state pension increase ensures that older citizens maintain their standard of living despite inflation and economic pressures.
The updated figures mean pensioners will see around £574.60 extra per year, taking the new state pension up to £12,534.60 annually, compared with £11,973.00 in 2025.
Breakdown of the DWP State Pension Increase
| Pension Type | 2025/26 Weekly | 2026/27 Weekly | Weekly Increase | 2025/26 Annual | 2026/27 Annual | Annual Increase |
|---|---|---|---|---|---|---|
| Basic State Pension | £176.45 | £184.90 | +£8.45 | £9,175.40 | £9,614.80 | +£439.40 |
| New State Pension | £230.25 | £241.30 | +£11.05 | £11,973.00 | £12,547.60 | +£574.60 |
Both the basic state pension and new state pension will benefit from the DWP state pension increase, reflecting the highest earnings growth rate in the triple lock formula.
Why the DWP State Pension Increase Is Higher This Year
1. The Triple Lock Effect
The DWP state pension increase follows the triple lock rule — pensions rise each year by whichever is highest: average earnings, inflation (CPI), or 2.5%. Since wage growth hit 4.8%, that figure sets the benchmark for April’s adjustment.
2. Protecting Pensioners’ Income
The 2025 DWP state pension increase ensures that retirees don’t fall behind rising costs. This marks another year where the government upholds the triple lock promise to protect pensioners from inflation and low wage growth.
3. Approaching the Tax Threshold
The state pension increase keeps payments just under the personal tax-free allowance — but by 2027, if tax thresholds remain frozen, many retirees could start paying tax on their state pensions.
Impact of the DWP State Pension Increase
- Over 12 million pensioners across the UK will benefit from higher payments.
- Full new state pension holders will see their weekly income rise to £241.30, while basic pensioners will reach £184.90 per week.
- The boost also adds pressure on public finances, as the DWP allocates billions more toward pensions.
Still, this DWP state pension increase reflects the government’s ongoing commitment to protect older citizens from the cost of living crisis.
The DWP state pension increase of 4.8% for 2025/26 marks a positive step for millions of retirees. With payments rising to £12,534.60 a year, pensioners will enjoy stronger financial support — though it nudges them closer to the tax threshold.
As the DWP maintains the triple lock promise, this increase offers reassurance that the government continues to value and protect the incomes of older Britons.
FAQs
When will the DWP state pension increase take effect?
The new rates apply from April 2026, covering the 2025/26 financial year.
Who benefits from the DWP state pension increase?
Anyone receiving the basic or new state pension under DWP regulations will automatically receive the 4.8% rise.
Will the state pension increase affect taxes?
Yes, by 2027, the pension may surpass the tax-free allowance if thresholds stay frozen, potentially bringing some pensioners into taxation.