State Pension changes in April 2025
20 Feb 2025
Positive news for pensioners: from April 2025, the State Pension is set to increase. This change is in line with the government's commitment to supporting pensioners through the State Pension triple lock. Let’s dive into what this means and how it impacts your finances.
Understanding the Increase
From April 2025, those receiving the State Pension will see a boost thanks to the 4.1% increase. This is a rise tied to the earnings link, which forms part of the pension triple lock system. For individuals on the full, new flat-rate State Pension—applicable to those who reached state pension age after April 2016—the weekly payment will rise to £230.25. That's an extra £470 over the year! Those on the full, old basic State Pension, for those who reached the age prior to April 2016, will see their weekly payments increase to £176.45, adding £361 annually.
Why the Change?
The State Pension rise is partly driven by wage growth over the previous year. The triple lock ensures that pensions increase by the highest of three measures: inflation, wage growth, or 2.5%. This ensures that the State Pension remains robust enough to cover the rising cost of living and maintains relevance to the current economic landscape.
A reminder of what the State Pension Triple Lock is…
Implemented in 2010, the triple lock is a promise to protect pensioners’ income. It ensures annual increases based on the maximum of three factors: the Consumer Prices Index (CPI) inflation from the previous September, average wage increases from May to June, or a flat 2.5%. The system exists to prevent the erosion of pension wealth over time and aims to keep up with economic changes.
Future Outlook
Chancellor Rachel Reeves has confirmed that the triple lock will remain in place until at least the end of the current Parliament. Therefore, British pensioners can continue to expect annual increases to the national State Pension.
