The increase to the state pension from 6th April 2025 has been confirmed as 4.1%, taking the flat-rate state pension to £230.30 per week (up from the previous £221.20 per week). This equates to just over £12,000 per year or £1,000 per month.
The increase was confirmed in the Autumn Budget on 30th October by the new Chancellor, Rachel Reeves. She has pledged to maintain the current “triple lock” until the end of the current Parliament. The increase this year was determined by the figure for average annual wage growth (for May to July 2024) of 4.1%, higher than both the September inflation figure of 1.7% and the minimum increase level of 2.5%.
The state pension was changed to the current flat-rate system in April 2016, intended to simplify the previous system of basic state pension, SERPS, State Second Pension and pension credits. To qualify for the full flat-rate state pension you now require 35 qualifying years of National Insurance contributions or credits.
Those people who were better off under the previous system will still receive the higher amount they were previously entitled to. You may be able to pay voluntary contributions, to fill any gaps in your National Insurance record.
State pension age is currently 66, but will gradually increase to age 67 between 2026 and 2028. There is a further rise to age 68 due between 2044 and 2046, although it is possible the Government may bring this increase in sooner.
You can check your state pension forecast online at https://www.gov.uk/check-state-pension (please note this link will take you to a UK Government website and we are not responsible for its content) or complete and post the BR19 request form.
You do have to claim your state pension as it will not be paid automatically. It is paid gross but is taxable, so your tax code is likely to change for any other sources of income.
We are always available to discuss any queries or concerns, so just call or drop us an e-mail.