State pension set to rise by up to £460 a year – but Martin Lewis warns it won't help pensioners this winter and most won't get the maximum
The state pension is set to rise by up to £460 a year (£8.80 a week) from 6 April 2025 under what's known as the 'triple lock' guarantee. But MoneySavingExpert.com (MSE) founder Martin Lewis has warned that any rise will come too late to help pensioners set to lose their Winter Fuel Payments this winter, while most won't get the maximum increase. Here's what you need to know.
Under the so-called 'triple lock' commitment, the state pension typically goes up each April by whichever is the highest of average wage growth between May and July (including bonuses), September's Consumer Prices Index (CPI) inflation measure, or 2.5%.
The figure for average wage growth has today (Tuesday 10 September) been confirmed as 4% by the Office for National Statistics. As this is higher than the current 2.2% rate of inflation, it means the state pension is likely to increase by 4% or by up to £8.85 a week – though September's CPI isn't published until mid-October, which is when the Government is expected to confirm any rise.
Martin: 'There will be pensioners this winter choosing between heating and eating'
While the state pension is set to rise, Martin has warned that it will come too late to help pensioners this winter, particularly the millions who will now miss out on the up to £300 Winter Fuel Payment due to the Government restricting it to those on certain benefits – which Martin has cautioned is "too narrow a group". It comes as the Government today won a Parliamentary vote to press ahead with its planned changes to the benefit.
Meanwhile, not everyone will get the expected up to £460 state pension rise – only one in four pensioners (3.4 million) get the 'new' state pension compared to three in four (9.3 million) who get the old, lower state pension.
Here's what Martin said in full on X (formerly Twitter):
Good news. The full 'new' state pension is to rise £460 a year next year due to the triple lock. That is a real rise of about £200 above inflation. Yet there are two things I'd point out in the context of the debate about the Winter Fuel Payment.
1. The rise starts next April. This winter most pensioners are facing (looking at energy bills alone) a typical £500 higher cost compared to last (energy bills are £100ish cheaper, but no £300 cost of living payment, no up to £300 Winter Fuel Payment).
2. The full state pension rise is for those who get the full state pension. There are up to 800,000 of the poorest pensioners who get less than the full state pension (£11,400 a year) who aren't claiming Pension Credit and will miss out on the Winter Fuel Payment even though they should get it. They are very hard to reach and will be under huge financial pressure. These are therefore people the Government said should be helped but due to difficulties in the system won't be. These are the people I'm most worried about, some of whom may end up choosing between heating and eating.
NB: Only one in four pensioners get the 'new' state pension (hat tip to @paullewismoney). The 'old' state pension also has the triple lock, but as it is on a lower base won't rise as much.
New state pension set to rise by up to £460 from next April
Here's how much the new state pension is expected to rise by:
Year | Weekly payment | Annual payment (1) |
|---|---|---|
2024/25 (current) | £221.20 | £11,541.90 |
2025/26 (new – if increased by 4%) | £230.05 | £12,003.68 |
Increase | £8.85 | £461.78 |
(1) Calculated by dividing the weekly amount by seven to get the daily amount, then multiplying the daily amount by 365.25 (to account for leap years).
Old state pension set to rise by up to £350 a year
And here's how much the old basic state pension – which you'll be on if you reached state pension age before April 2016 – is due to rise by:
Year | Weekly payment | Annual payment (1) |
|---|---|---|
2024/25 (current) | £169.50 | £8,844.27 |
2025/26 (new – if increased by 4%) | £176.28 | £9,198.04 |
Increase | £6.78 | £353.77 |
(1) Calculated by dividing the weekly amount by seven to get the daily amount, then multiplying the daily amount by 365.25 (to account for leap years).
What to do if you're struggling now
First, use our 10-minute benefits check to see what you could get and make sure you're not missing out on vital support.
It's also worth contacting your council to see what help it can offer. Under the Household Support Fund, which was recently extended to April 2025, councils in England can access funding to help those most in need with the cost of daily essentials, including energy bills. Local authorities in Northern Ireland, Scotland and Wales run similar schemes, which will also receive additional funding.
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1 October 2024
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