State pension increase 2025: how much is new UK full rate amount in April, rise forecast - and who gets it?

• The full state pension will increase by £460 annually to £11,962.60 from April 2025
• The rise is based on wage growth, as inflation is expected to be lower than wage increases
• This increase applies to pensioners who reached state pension age after April 2016
• The rise is the smallest in nearly four years and is meant to keep pace with rising prices
• Older pensioners on the basic state pension will see a smaller increase
• The increase comes as Labour ends universal Winter Fuel Payments, shifting to means-tested assistance, affecting around 10 million pensioners

The full state pension is set to increase as of April 2025.

The Office for National Statistics (ONS) said the rise is based on official wage data, with total pay growing by 4% in the three months leading up to July.

Under the "triple lock" rule, the state pension goes up every April based on whichever is highest: average wage growth from May to July of the previous year, inflation in September of the previous year, or 2.5%.

Since inflation is expected to be lower than wage growth, the wage increase will likely be used to calculate the rise.

But what does it mean for you, and how much will those who receive the full state pension now be awarded? Here is everything you need to know.

(Photo: Matt Cardy/Getty Images) | Getty Images

How much is the full state pension increasing?

Pensioners who reached state pension age after April 2016 will see their full, flat-rate state pension rise to £11,962.60 annually from next April – an increase of £460. This is, however, the smallest increase in almost four years.

The figures are also subject to possible revisions next month, and the Government will confirm the planned increase in the autumn.

Former pensions minister Sir Steve Webb said: “Part of next April’s increase is simply to keep pace with rising prices.

“Based on the current inflation figure of 2.2%, the new state pension would need to rise by just over £250 simply for pensioners to stand still. Whilst an above-inflation increase of £460 will be welcomed, only the further £210 represents a real increase.”

What does it mean for me?

Many pensioners do not receive the full state pension and so they will not see the full cash increases.

Recent analysis released by Royal London revealed only around half of people receiving the new state pension last year were getting the full weekly amount – and around 150,000 were on less than £100 per week.

The headline increase is specifically for those on the new full state pension introduced after April 2016.

Someone on the old full basic state pension would see their pension rise from £8,814 to £9,167 per year – an annual increase of around £353.

But for pensioners who reached the state pension age after April 2016 and receive the full, flat-rate pension, their payments will increase by £460 annually.

Is it enough?

The news of the pension increase also comes against the backdrop of Labour’s contentious decision to end universal Winter Fuel Payments, a benefit traditionally provided to all pensioners to help with heating costs.

Starting this winter, these payments will be "means-tested," meaning they will be restricted to those receiving pension credit or other benefits. Around 10 million pensioners are expected to lose out as a result of the policy.

Sir Steve said “those who lose £200 or £300 in winter fuel payments will therefore still be worse off in real terms next April.”

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, cautioned the rise in the state pension will only partially offset the pain for those being stripped of their winter fuel allowance.

She said: “There’s every chance it’s not enough to placate those pensioners still reeling from the loss of the winter fuel payments, especially given how close this is edging to busting the personal allowance.”

She warned also that the new annual pension is moving closer to the £12,570 personal tax allowance threshold, which is expected to remain in place until 2028.

Morrissey added: “It raises the spectre of the full state pension alone taking pensioners over it and into the realms of paying income tax during the next few years.”

What can pensioners do?

While around 1.4 million pensioners are already receiving pension credit, there are up to an estimated 880,000 households eligible for the support who are yet to claim.

Claims for pension credit doubled in the weeks following the Government’s announcement about restricting winter fuel payments, according to Department for Work and Pensions (DWP) figures.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “There will no doubt be pensioners deeply concerned about the decision to scrap the Winter Fuel Payment for those who don’t claim Pension Credit, regardless of a rise to the state pension.

“Energy bills have been notorious at eating away at disposable income, so any cuts to such relief will come with criticism. There was also a worrying statistic from Age Concern, saying two million pensioners are going to struggle to pay their bills and heat their homes.

“The Government has been calling for eligible pensioners to contact DWP to sign up to Pension Credit, such as those on low incomes, but it has been reported that many may still be waiting for an answer.

“Those who feel they are doomed to see a shortfall in retirement income would be wise to boost their existing pot or even set up a private pension elsewhere to supplement their income.

“Retiring is a time where pensioners should be able to live comfortably, not cut back on necessities, like heating a home over the winter months.”

What do you think about the upcoming state pension increase and the changes to Winter Fuel Payments? Share your thoughts and experiences in the comments section.