DWP Pension Boost in April 2025: The UK Government has confirmed a 4.1% increase in the State Pension for the 2025-26 financial year. This announcement was made by Chancellor Rachel Reeves, who reaffirmed the Government’s commitment to the pension triple lock. The triple lock ensures pensions rise by the highest of average earnings, inflation, or 2.5%.
This increase will benefit over 12 million pensioners, with some gaining up to £470 per year. Pension Credit will also rise, providing extra financial support for low-income pensioners.
How Much Will the UK State Pension Increase in 2025?
From April 2025, the State Pension will rise by 4.1%, following the triple lock policy.
- Pensioners will receive up to £470 more annually
- The increase will benefit over 12 million pensioners
Additionally, Pension Credit will also increase:
- The standard minimum guarantee will rise from £11,400 to £11,850 per year for single pensioners
What Is Pension Credit & Who Is Eligible?
Pension Credit is a benefit designed to support pensioners on low incomes. Many eligible individuals do not claim it, even though it provides significant financial help.
Eligibility for Pension Credit
To qualify, you must:
- Live in England, Scotland, or Wales
- Have reached State Pension age
Your income must be:
- Below £218.15 per week (single person)
- Below £332.95 per week (couple)
If your income is higher, you may still qualify if you:
- Have a disability
- Care for someone
- Have savings
- Pay housing costs (such as mortgage interest payments)
Changes for Couples
- Previously, couples where only one person was over State Pension age could apply
- Now, both partners must be over State Pension age to qualify
- If you are already receiving Pension Credit, it will continue unless your circumstances change
Parents Urged to Check National Insurance Record Before April 5, 2025
Parents who took time off work to care for their children may lose up to £33,000 in pension income if they do not fill National Insurance (NI) gaps before the deadline.
Why Does This Happen?
- Stay-at-home parents or part-time workers may have missing or partial years in their NI record
- Missing contributions can reduce State Pension entitlement
Who Needs to Act?
- Parents who had young children between 2016 and 2018 should check their NI record
- Those who waited until their child started school at age 4 before returning to work may have gaps in contributions
- A missing year can reduce pension income by £1,310 annually, leading to a loss of over £33,000 over a 25-year retirement
How to Fix NI Gaps Before the Deadline
- Voluntary NI contributions can be made for 2016-17 and 2017-18 tax years
- The deadline to make payments is April 5, 2025
- Checking your NI record takes just 15 minutes online via the HMRC website
The State Pension and Pension Credit increases will provide crucial support for millions of pensioners across the UK. However, many parents risk losing thousands in pension income if they do not check and fix National Insurance gaps before April 5, 2025.
Take a few minutes to check your NI record online and secure your future pension benefits. Visit GOV.UK today to ensure you do not miss out!
FAQ’s
How much will the UK State Pension increase in 2025?
The UK State Pension will increase by 4.1% in 2025-26, giving pensioners up to £470 more per year.
Who qualifies for Pension Credit?
Pension Credit is for pensioners on low incomes. To qualify, your weekly income must be below £218.15 (single) or £332.95 (couple), but additional factors like disabilities, caring responsibilities, and housing costs may also be considered.
Why should parents check their National Insurance record?
Parents who took time off work to care for children may have NI gaps, reducing their State Pension. Checking and making voluntary contributions before April 5, 2025, can help prevent losing up to £33,000 in retirement income.
How can I check my National Insurance contributions?
You can check your NI record by logging into your personal tax account on the GOV.UK website. It takes about 15 minutes to review your contributions and see if voluntary payments are needed.
What is the deadline for fixing NI gaps?
The deadline to make voluntary NI contributions for tax years 2016-17 and 2017-18 is April 5, 2025. Payments must be completed before this date to count towards your State Pension.
