The Department for Work and Pensions (DWP) has unveiled significant new financial support for retirees, confirming that over 12 million state pensioners will see their incomes rise next year. The announcement was made in the Houses of Parliament as many pensioners continue to struggle with high living costs.
Triple Lock Commitment Delivers Pension Boost
The update came in response to a question from Conservative MP Sir Andrew Mitchell, who asked what steps were being taken to help pensioners in his Sutton Coldfield constituency with the cost of living. Labour MP Torsten Bell provided the detailed response on behalf of the government.
He confirmed that, following the Autumn Budget 2025, the government's commitment to the Triple Lock will result in a 4.8% increase to both the basic and new State Pensions from April 2026. This rise will boost annual income by up to £575 for eligible individuals.
This increase follows a substantial rise in the 2025/26 financial year, which gave those on the full new State Pension an extra £360.
Enhanced Support for the Poorest Pensioners
The government also outlined additional measures targeting those most in need. The Pension Credit Standard Minimum Guarantee will also increase by 4.8% in April 2026.
- For single pensioners, it will rise from £227.10 to £238 per week.
- For couples, it will increase from £346.60 to £363.25 per week.
Those receiving Pension Credit will automatically qualify for Cold Weather Payments. Furthermore, the Winter Fuel Payment will continue to assist over three quarters of all pensioners throughout this parliament.
Broader Energy Bill Support for Households
To address ongoing cost of living pressures, the government announced wider help with energy costs from April 2026. An average of £150 will be removed from household energy bills across Great Britain by ending the Energy Company Obligation levy.
Additionally, the Warm Home Discount scheme is being expanded to reach around an extra 2.7 million households. This winter, approximately 6 million low-income households will receive £150 to help with their energy costs.
The government has also pledged £1.5 billion in new funding to support households in fuel poverty and is advancing its Warm Homes Plan to invest in insulation and low-carbon heating for millions of homes.
With the Warm Home Discount regulations set to expire in 2026, ministers stated they will consider all options for future bill support beyond that point.
