Overview

• The Department for Work and Pensions is considering a policy to allow early, pro-rated state pension payments for adults with terminal illnesses.
• Standard Life has proposed introducing bridging benefits through Universal Credit equivalent to Pension Credit for individuals in the year before state pension age to reduce poverty risk.
• The government has reaffirmed its commitment to the Triple Lock mechanism through the current parliament, ensuring annual pension increases of at least 2.5% or in line with inflation or wage growth.
• Latest forecasts suggest the state pension will rise by around 5.3% in April 2026, adding approximately £634 to annual payments and potentially pushing incomes above the £12,500 tax-free threshold.
• The state pension age will increase to 67 from May 6, 2026, prompting calls to improve Automatic Enrolment coverage so more workers can save for retirement alongside state benefits.