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UK State Pension to Rise 4.8% in April 2026 as Age Increase Nears and Holiday Payments Move Up

Frozen thresholds are pulling more retirees into tax, prompting calls for clearer protections.

Overview

  • DWP confirms the full New State Pension will increase to £241.30 a week (about £12,548 a year) in 2026/27, with the basic rate rising to £184.90.
  • Payments due on Thursday 1 January and Friday 2 January in Scotland will be paid early on Wednesday 31 December.
  • The State Pension age will increase from 66 to 67 between April 2026 and April 2028, affecting people born after April 1960.
  • With income tax and inheritance tax thresholds frozen to 2030, analysts warn more pensioners could face income tax and higher estate exposure; reported reforms from April 2027 would bring pensions into IHT for the first time.
  • Ministers are under pressure to set a pensions tax lock and provide clarity on future pension-tax rules as the new rates take effect.