The DWP has confirmed proposed State Pension payment rates for 2026/27 with increases under the Triple Lock – here’s how much you could receive
Millions of elderly individuals are set for a substantial State Pension increase in April, following the confirmation of proposed rates for the 2026/27 financial year by Secretary of State for Work and Pensions, Pat McFadden. The suggested new payment rates for the State Pension and benefits have been presented to Parliament and will take effect from April 6.
Under the Triple Lock, both the New and Basic State Pensions rise annually in line with whichever is highest between the average annual earnings growth from May to July (4.8 percent), the CPI inflation rate in the year to September (3.8 percent), or 2.5 percent. Additional State Pension elements and deferred State Pensions increase each year with the September CPI figure (3.8 percent).
This increase will result in those on the full New State Pension receiving £241.30 per week, while those on the maximum Basic State Pension would receive £184.90 per week.
It’s crucial to note that the amount of State Pension someone receives is dependent on their National Insurance contributions. To receive the full New State Pension, you need approximately 35 years’ worth, but this may vary if you were ‘contracted out’.
The full New State Pension will rise by around £574 to £12,547 over the new financial year. However, the uprating leaves just £36 before the Personal Allowance income threshold of £12,570 is exceeded, which could result in more pensioners with any additional income paying tax in retirement, reports the Daily Record.
Chancellor Rachel Reeves has recently announced that fresh provisions will be implemented to guarantee that pensioners whose only source of income is the State Pension will not face tax obligations before April 2030.
This development comes after Ms Reeves revealed during the Autumn Budget that the Personal Allowance will stay fixed at £12,570 until April 2031, representing a three-year extension beyond the initial schedule.
New State Pension payment rates 2026/27
Full New State Pension
- Weekly: £241.30 (from £230.25)
- Four-weekly pay period: £965.20
- Annual amount: £12,547
Full Basic State Pension
- Weekly: £184.90 (from £176.45)
- Four-weekly pay period: £739.60
- Annual amount: £9,614
Other State Pension rates
- Category B (lower) Basic State Pension – spouse or civil Partner’s insurance: £110.75 (from £105.70)
- Category C or D – non-contributory: £110.75 (from £105.70)
Complete information regarding Additional State Pension, Widows Pension, increments and Invalidity Allowance is available on GOV.UK.
New Pension Credit rates
Standard minimum guarantee
- Single: £238.00 (from £227.10)
- Couple: £363.25 (from £346.60)
Additional amount for severe disability
- Single: £86.05 (from £82.90)
- Couple (one qualifies): £86.05 (from £82.90)
- Couple (both qualify): £172.10 (from £165.75)
- Additional amount for carers: £48.15 (from £46.40)
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, commented: “Pensioners will breathe a sigh of relief as the Chancellor confirmed pensioners whose income is solely the State Pension won’t have to pay income tax on it for the remainder of this Parliament. This addresses concerns that the State Pension will breach the threshold for paying tax in 2027/28.”
She continued: “The announcement follows news in the Budget that the UK Government was looking at ways to relieve the admin burden on pensioners who may be landed with a tax bill for the first time. The Chancellor said they are working on a solution that means people aren’t being chased for tiny amounts of money.
“It’s news that will be welcomed by pensioners who are seeing their State Pension move to within a whisker of this threshold from April and are worried about what the future might hold for them. However, it is only a temporary reprieve, with the Chancellor refusing to be drawn on whether the change will remain long term. Currently, it will only last for the duration of this Parliament. We can expect to find out more about longer-term options next year.”
State Pension and tax
According to guidance on GOV.UK: “You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates.
Your total income could include:
- The State Pension you get – Basic or New State Pension
- Additional State Pension
- A private pension (workplace or personal) – you can take some of this tax-free
- Earnings from employment or self-employment
- Any taxable benefits you get
- Any other income, such as money from investments, property or savings
Check if you have to pay tax on your pension
Before you can check, you will need to know:
- If you have a State Pension or a private pension
- How much State Pension and private pension income you will get this tax year (April 6 to April 5)
- The amount of any other taxable income you’ll get this tax year (for example, from employment or state benefits)
You cannot use this tool if you get:
- Any foreign income
- Marriage Allowance
- Blind Person’s Allowance
Use this online tool at GOV.UK to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on GOV.UK here.
