Millions of pensioners across the UK are set for a significant income boost, thanks to a State Pension increase confirmed in the government's recent Autumn Budget.
Budget Announcement Confirms Pension Rise
Chancellor Rachel Reeves delivered the Labour government's Autumn Budget on Wednesday, November 26, 2025, outlining financial plans that include a welcome rise for those receiving the State Pension. From April 2026, payments will increase by 4.8 per cent.
This rise is in line with the government's commitment to the pension Triple Lock for this parliament. The HM Treasury stated that this policy means pensioners on the full new State Pension will receive an extra £575 a year.
What the New Pension Rates Mean for You
The 4.8 per cent increase has a direct impact on weekly and annual payments. For those eligible for the full new State Pension, the weekly amount will jump from the current £230.25 to £241.30.
This change translates to a new maximum annual payment of £12,547.60. For older pensioners receiving the full basic State Pension, the new rate will be £184.90 per week, or £9,614.80 per year.
How the Triple Lock Works
The specific amount of the State Pension increase is determined by the Triple Lock mechanism. This policy guarantees that the State Pension rises by the highest of three figures each year:
- The consumer price index (CPI) measure of inflation from the previous September.
- Average wage growth between May and July of the previous year.
- A baseline of 2.5 per cent.
This year, average wage growth was the highest at 4.8 per cent, which is why pension rates will rise in line with that figure.
Announcing the change, Chancellor Reeves said: “Whether it’s our commitment to the triple lock or to rebuilding our NHS to cut waiting lists, we’re supporting pensioners to give them the security in retirement they deserve.”
She added that the Budget would outline fair choices to deliver on national priorities, including cutting NHS waiting lists and the cost of living.
