Overview
- The full new State Pension will rise to £241.30 a week (about £12,547.60 a year) and the basic State Pension to £184.90 a week (about £9,614.80 a year) from April 2026 under the triple lock.
- The government will maintain the triple lock this Parliament, uprate Pension Credit by 4.8%, and launch a new Pensions Commission alongside a third review of the State Pension age.
- Officials say pensioners whose only income is the basic or new State Pension will not pay income tax in 2025/26, with the personal allowance remaining at £12,570.
- From 2027-28, the Treasury is working on a simple assessment fix so those with only state pension income are not charged small amounts of tax if payments exceed the allowance, with detailed design still in development.
- Experts including Sir Steve Webb and Tom McPhail warn the approach could create a two-tier outcome that penalises those with small private pensions, while younger claimants on the new State Pension can receive roughly £2,933 more per year than older retirees on the basic rate.