Millions of UK pensioners aged over 65 are expected to see their state pension rise by £561 from April 2026, thanks to the triple lock mechanism.
This boost follows the latest data from the Office for National Statistics (ONS) showing wage growth of 4.7% in the three months to July 2025, which is likely to determine next year’s increase.
The triple lock guarantees that the state pension increases each April by whichever is highest of average wage growth, inflation, or 2.5%. Since wage growth outpaced the other two metrics this year, the 4.7% rise will apply to the 2026 uplift.
How the £561 Pension Bonus Will Work
The Department for Work and Pensions (DWP) has confirmed that the upcoming rise will affect both the new full state pension and the old basic state pension.
Here’s a clear breakdown of what this increase will look like:
| Pension Type | Current (2025) Annual | After 4.7% Rise (2026) | Annual Increase |
|---|---|---|---|
| New Full State Pension (post-April 2016 retirees) | £11,973.60 | £12,534.60 | £561 |
| Old Basic State Pension (pre-April 2016 retirees) | £9,172.00 | £9,607.00 | £435 |
This boost will apply automatically to all eligible state pension recipients.
Why This Increase Matters for Over-65s
For millions of older Britons, the state pension is their primary source of income. Rising prices for food, housing, utilities, and healthcare have strained household budgets, especially for those living on fixed incomes.
A £561 annual increase may not seem massive, but it can significantly improve day-to-day living by:
- Covering winter heating bills
- Reducing reliance on savings or credit
- Providing extra money for essentials like groceries or transport
This uplift also helps maintain purchasing power and prevents erosion of income due to inflation.
Potential Tax Implications
While this increase is welcome news, it also brings more pensioners closer to the income tax threshold.
- The personal allowance (tax-free income threshold) has been frozen at £12,570 since 2021.
- With the new full state pension rising to £12,534.60, many pensioners will be just £35 below the tax line.
- Any additional income from private pensions, savings interest, or part-time work could push them into paying income tax for the first time.
Retirees are advised to review their tax planning and income sources to prepare for this shift.
The Future of the Triple Lock
This latest rise has reignited the debate about the long-term sustainability of the triple lock.
- Economists warn that high wage growth and frozen tax bands could make the policy financially challenging for the government.
- Critics argue it may create intergenerational unfairness, while supporters insist it protects pensioners from poverty.
For now, the government has confirmed the triple lock will remain in place for the 2026 rise, but its future beyond that remains uncertain.
From April 2026, pensioners aged over 65 can expect a £561 rise in the new state pension, lifting the amount to £12,534.60 per year, while those on the old basic pension will see their income rise to £9,607.
While this increase offers much-needed financial relief amid rising living costs, pensioners should also be mindful of potential tax liabilities and continue to watch for future policy changes affecting retirement income.
FAQs
Who will get the £561 state pension increase?
All pensioners on the new full state pension will receive the £561 rise, provided they meet age and contribution eligibility.
When will the £561 increase be paid?
The new rate will take effect from April 2026, applying to all eligible pensioners automatically.
Will this affect my taxes?
Yes, some pensioners may cross the £12,570 personal allowance threshold, potentially paying income tax for the first time.
