How much the State Pension pays in 2024 and how much it'll be worth in 2025

Those receiving the UK State Pension will enjoy another decent pay rise in April 2025. Read on to see how much the New and Basic State Pensions pay now and how much retirees will receive in the 2025/26 tax year.

UK State Pension pay will rise by up to £473 a year starting in April 2025, it has been confirmed. 

The increase was initially expected to come in at £460, but the ONS yesterday revised the figure used to calculate the rise upwards slightly from 4% to 4.1%.

This means those receiving the full amount will get £11,975 over the course of the 2025/26 financial year.

Time running out to top up your State Pension pay

Not all State Pension are equal

Exactly how much pension you receive will vary based on several factors. 

The rest of this article looks in more detail at how the State Pension increases are calculated and how much you can expect to receive.

But first, if you're retired and struggling to make ends meet, make sure you are receiving all these vital credits and benefits that you are entitled to.

If you still need help bringing in extra cash after you've finished working, take a look at this guide to boosting income in retirement.

How the 2025/26 State Pension rise was calculated

The rate at which the State Pension increases each year is calculated using what's known as the triple lock system.

In short, this means looking at three figures:

• wage growth between May and July
• inflation as determined by the Consumer Price Index in September (released in October)
• 2.5%.

Whichever is the highest will determine the following year's State Pension rise.

The inflation figure was the final piece of the puzzle we were waiting to see, which was confirmed at 1.7% this morning.

This means the highest figure of the three is wage growth.

As we mentioned earlier, this initially came in at 4% but was revised upwards to 4.1% yesterday and this will be the figure used for next year's State Pension pay rise.

Now let's take a look at how much retirees will get in pounds and pence.

Which State Pension are you eligible for?

As a result of our convoluted and, some would say, unfair welfare system, there are two different State Pensions.

There's the old Basic State Pension and the New State Pension, which pay two significantly different amounts.

The old pension is given to men born before 6 April 1951 and women born before 6 April 1953 and is notably less generous than the new State Pension.

As a case in point, those on the Old State Pension will only see their pay rise £361 next April compared to £473 for those on the new one.

How much the New State Pension pays in 2024/25

The full New State Pension rose by £17.35 per week back in April 2024.

This means retirees will take home £221.20 a week or £11,502 a year.

How much the old Basic State Pension pays in 2024/25

The old Basic State Pension rose by £13.30 per week from April 2024.

This means retirees will take home £169.50 a week or £8,814 a year.

How much the New State Pension will pay in 2025/26

The New State Pension will rise to £230.30 a week, or £11,975 a year, in April 2025.

How much the old Basic State Pension will pay in 2025/26

Those on the Old Basic State Pension will receive £176.44 a week, or £9,175 a year, from April 2025. 

Past State Pension changes

Here’s how the State Pension has increased over the last few years.

Boosting your pension income

If you're struggling to make ends meet in retirement, you must ensure you're getting all the help you're entitled to from the Government.

Sadly, it's pensioners on low incomes who are most likely to miss out in this regard, so we've put together this checklist of vital credits and benefits people can get in retirement.

If you've gone through the list and are still struggling financially, take a look at this guide to boosting your income in retirement and this piece on clearing debt. 

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