Martin Lewis has confirmed that the State Pension will increase by 4.8% from April 2026, providing a larger boost than previously expected. The financial expert explained that the basic old State Pension will rise from £176.45 to £184.90 per week, while the standard new State Pension will increase from £230.25 to £241.30. Other related elements, such as SERPS, GRB, deferral and protected amounts, will see a 3.8% rise. This uplift means state pensioners will receive over £500 more annually, adding more than £100 million to the overall pension bill.
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Those on the basic State Pension can expect their weekly income to rise to £184.90, while those receiving the full new State Pension will see their payments reach £241.30. However, despite the increase, thousands of households across the UK will not benefit due to a rule introduced in 1997, which limits certain pension upratings. This has reignited debate among financial experts and pensioners about fairness and consistency within the system.
According to the Department for Work and Pensions (DWP), State Pensions will rise in line with the September Consumer Price Index (CPI) figure, which was confirmed at 4.8%. Meanwhile, index-linked defined benefit (DB) pensions will increase by up to 3.8%, depending on each scheme’s specific cap and arrangements. This means that many retirees with DB pensions will still see a welcome improvement to their annual income, despite slightly lower adjustments compared to the State Pension.
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David Brooks, head of policy at Broadstone, said that while the rise would “deliver another boost to retirement finances,” it also reignites discussion about pre-1997 indexation. He explained that pensioners with service before April 1997 are often left out of these upratings, creating ongoing frustration. “It is easy to sympathise with those impacted where this causes hardship,” Brooks added, noting that the issue is likely to remain a contentious topic in the coming months.
