The State Pension increases every year, but not all pensioners are paid at the same rates.
Pensioners are on course for a 4.8% rise in the State Pension from April 2026 (Image: Getty)
Older state pensioners across the UK are set to get £2,933 less in State Pension payments per year in 2026 compared to younger retirees thanks to the triple lock.
The government increases the State Pension rates at the start of every new tax year in April and the amount it goes up by is determined by one of three factors – known as the ‘triple lock’. These are the consumer price index (CPI) measure of inflation (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%. Whichever is the highest out of these three will determine how much the State Pension is increased in the new tax year.
Pensioners are on course for a 4.8% rise in the State Pension from April 2026, in line with average wage growth, after Office for National Statistics (ONS) figures were released this week.
The figures showed that CPI inflation for September was 3.8%, remaining at the same level as both July and August. Previously-released figures showed that total wage growth, including bonuses, for the quarter to July was 4.8%, making this the highest of the three figures and the key figure that is expected to be used for April’s State Pension increase. But as the UK’s State Pension system is split into two different schemes – basic and new – not all pensioners will be paid at the same rate.
The 4.8% increase means that people getting the full new State Pension are set to receive £241.30 per week, which amounts to an estimated £12,548 per year.
But older pensioners receiving the full basic State Pension will only get £184.90 per week by comparison, which amounts to an estimated £9,614.80 annually – a whopping £2,933.20 less than younger retirees.
Men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension, but anyone born after these dates can get the new State Pension instead, which is paid at a higher rate.
According to UK Parliament, an estimated 8.57 million pensioners were claiming the basic State Pension in the 2024/25 tax year, while only 4.38 million were new State Pension claimants. As the vast majority of pensioners get the basic State Pension, it means around 8.57 million are set to miss out on up to £2,933.20 annually when the new rates take effect.
But age isn’t the only factor in determining which State Pension you get, with everyone who is eligible for the basic State Pension having already reached State Pension age, but how much money you get also depends on your National Insurance record.
The expected 4.8% increase in 2026 could also mean that more pensioners will soon start paying tax on their State Pension as the rates may take them over the personal allowance threshold.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, said: “For pensioners, the latest inflation data suggests another inflation-beating boost to the annual state pension payment is coming their way next April.”
She added: “The personal allowance has remained at £12,570 since the 2020-21 tax year, so unless the Chancellor revises this in the Budget, more retirees may find themselves paying a tax bill.
“Of course, some will already be paying tax on their retirement income, either because they deferred access to the state pension or because they also receive income from a private pension.”
