DWP £176.45 per week for State Pensioners: This comes alongside the annual uprating of working-age benefits such as Universal Credit, with people receiving those set to receive an extra £150 on average over the course of this year – an increase set to benefit 5.7 million working-age households. Disability benefits such as Disability Living Allowance, Carers Allowance and child benefits are also set to increase by the same amount.
Key Takeaways:
- Millions of pensioners to receive up to an additional £470 in their State Pension this year.
- Triple Lock means those receiving the State Pension are set to increase by up to £1,900 over the term of this Parliament.
- Over five million households receiving working-age benefits such as Universal Credit will also see an average boost of £150, with Plan for Change putting more money in working people’s pockets.
The Triple Lock – which guarantees that the State Pension increases annually by the highest of inflation, average earnings growth or 2.5% – means the basic and new State Pensions are increasing by 4.1%, well above the current level of inflation.
National Minimum Wage and National Living Wage
These changes come alongside increases to the National Minimum Wage and National Living Wage, benefiting three million eligible workers across the country. With the National Living Wage increasing to £12.21 for those aged 21 and over and the National Minimum Wage for those aged 18 to 20 seeing a record increase to £10 an hour, three million workers will benefit, with eligible full-time workers set to see an increase in their annual salary of £1,400.
This support is securing Britain’s future through the Plan for Change, which is delivering security and renewal by kick-starting economic growth to put more money in working people’s pockets and rebuilding the NHS.
Work and Pensions Secretary Liz Kendall said:
Our ironclad commitment to the Triple Lock gives pensioners across the country the certainty and security they need to live a full life in retirement.
We are putting more money in people’s pockets and driving up household income as part of our Plan for Change.
Minister for Pensions Torsten Bell said:
Raising the State Pension and rescuing the NHS – these are this government’s priorities to give all pensioners the dignity they deserve in their retirement. Those who have worked hard throughout their lives, paying into the system, are owed nothing less.
We’re improving the lives of millions of pensioners through our £7.84 billion additional funding for the State Pension this year. That means up to £470 extra in pensioners’ pockets from this week and comes alongside our work to boost Pension Credit uptake, and the £26 billion we’ve invested in the NHS that has seen waiting lists in England fall for 5 months in a row.
Chancellor of the Exchequer Rachel Reeves said:
With today’s increase in working-age benefits, and our ironclad commitment to pensioners through the Triple Lock, we are making the decisions that support those who need it in Britain, putting money into people’s pockets and delivering our Plan for Change.
The uprating of State Pensions and working-age benefits amounts to a cash boost of over £6.9 billion, demonstrating our commitment to ensuring pensioners enjoy the dignity and respect they deserve in retirement, while also supporting low-income families.
It also comes alongside proposals for the biggest welfare reforms for a generation. These measures are designed to ensure a welfare system that is fit for purpose and available for future generations – opening up employment opportunities, boosting economic growth and tackling the spiralling benefits bill while also ensuring those who cannot work get the support they need.
That support also includes help for pensioners. The government’s drive to support low-income pensioners has led to 50,000 extra Pension Credit awards since the summer – an increase of 64% compared to the same period last year.
Pension Credit is worth on average £4,300 a year and also unlocks support including help with Housing Costs, Council Tax and free television licenses.
Support also includes a £742 million extension of the Household Support Fund in England, from 1 April 2025 until 31 March 2026, providing support with the cost of essentials such as food, heating and bills.
FAQ
How much will pensioners receive in 2025?
Pensioners could receive up to £470 more in 2025 as part of the government’s State Pension increase under the Triple Lock system.
What is the Triple Lock and how does it work?
The Triple Lock ensures that State Pensions increase every year by whichever is highest – inflation, average earnings growth, or 2.5%.
Will Universal Credit payments rise in 2025?
Yes, Universal Credit and other working-age benefits will increase by an average of £150 across the year, helping over 5.7 million households.
What are the new National Minimum and Living Wage rates for 2025?
From April 2025, the National Living Wage will be £12.21 for workers aged 21 and over, and £10 an hour for those aged 18 to 20.
What is Pension Credit and who can get it?
Pension Credit is a benefit for low-income pensioners, offering around £4,300 a year and unlocking extra help like housing support and free TV licences.
