State Pension News & Updates
Stay informed about the latest State Pension rate changes, policy updates, and regulatory developments affecting your retirement planning.
Current Rates (2025/26 Tax Year)
From 6 April 2025:
| Item | Weekly Rate | Annual Rate |
|---|---|---|
| Full new State Pension | £230.25 | £11,973 |
| Class 3 voluntary NI | £17.75 | £923 |
| Class 2 voluntary NI | £3.50 | £182 |
| Lower Earnings Limit | £123 | £6,396 |
Recent Changes and Updates
April 2025 Increase (4.1%)
Effective: 6 April 2025
- Full State Pension increased from £221.20/week to £230.25/week
- Increase of £9.05/week (£471/year)
- Applied under Triple Lock (highest of earnings, inflation, or 2.5%)
- Based on September 2024 average earnings growth of 4.1%
Extended Deadline for Filling Gaps
Deadline: 5 April 2025
- Last chance to fill NI gaps from April 2006 to April 2017
- After this date, only the standard 6-year rule applies
- Fill at 2022/23 rates (£824.20/year for Class 3)
Class 2 Voluntary NI Ending (April 2026)
Effective: 6 April 2026
- Class 2 voluntary contributions will no longer be available for periods spent abroad
- Only Class 3 (£923/year) will be available going forward
- Must have lived in the UK for at least 10 years to qualify for Class 3 voluntary contributions
- If you're currently eligible for Class 2, consider filling recent gaps before April 2026
State Pension Age Increase to 67
Ongoing: 2026-2028
- State Pension age is gradually increasing from 66 to 67
- Affects people born between 6 April 1960 and 5 April 1961
- Increase is phased over this period (2 months every 2 months of birth)
- Everyone born after 5 April 1961 will have State Pension age of 67
Upcoming Changes
Future State Pension Age Increases
The government has announced plans for further increases:
- Age 68: Between 2044 and 2046 (for people born in 1977-1978)
- Reviews every 5 years to ensure State Pension age keeps pace with life expectancy
- Subject to parliamentary approval and may change
Triple Lock
The Triple Lock remains government policy, meaning State Pension increases by the highest of:
- Earnings growth (average wage increase)
- Inflation (CPI)
- 2.5%
However, the Triple Lock's future beyond the current parliament is subject to political decisions.
Historical Rate Changes
Recent Years
| Tax Year | Weekly Rate | Annual Rate | Increase | Triple Lock Element |
|---|---|---|---|---|
| 2025/26 | £230.25 | £11,973 | 4.1% | Earnings |
| 2024/25 | £221.20 | £11,502 | 8.5% | Earnings |
| 2023/24 | £203.85 | £10,600 | 10.1% | Inflation (CPI) |
| 2022/23 | £185.15 | £9,628 | 3.1% | Inflation (CPI) |
| 2021/22 | £179.60 | £9,339 | 2.5% | Minimum guarantee |
Triple Lock Suspension (2021/22)
The Triple Lock was temporarily suspended for 2021/22 due to distorted earnings data during COVID-19. The earnings element would have triggered an 8% increase, which the government deemed inappropriate given the economic context.
Major Policy Developments
Introduction of New State Pension (2016)
On 6 April 2016, the new State Pension replaced the old system:
- Simplified two-tier system into single-tier pension
- Set full amount at £155.65/week initially (now £230.25 in 2025/26)
- Changed qualifying years from 30 to 35 for full pension
- Removed ability to claim on spouse's/partner's record
- Removed contracted-out option going forward
- Changed deferral rules (now 5.8% per year, no lump sum)
Women's State Pension Age Equalization (1995-2018)
- 1995 Pensions Act: Equalized women's State Pension age with men's (from 60 to 65)
- 2011 Pensions Act: Accelerated the timetable
- Completed in November 2018 (women born after 5 April 1953 have same pension age as men)
- Led to the WASPI (Women Against State Pension Inequality) campaign
WASPI Campaign
Women Against State Pension Inequality argued that changes to women's State Pension age were communicated poorly, leaving many women with insufficient time to plan. Legal challenges have been unsuccessful, but the campaign continues.
What to Watch For
Triple Lock Future
The sustainability of the Triple Lock is regularly debated:
- Expensive for government (automatic increases above inflation)
- Popular with voters (protects pensioner incomes)
- Political parties make commitments around elections
Further Pension Age Increases
State Pension age may increase beyond 68:
- Linked to life expectancy increases
- Government reviews every 5 years
- Could affect people currently in their 40s and 50s
National Insurance Changes
Potential changes to watch:
- NI rates and thresholds (affect qualifying years)
- Self-employed NI (Class 2 abolished for mandatory contributions in 2024, voluntary option ending 2026)
- Lower Earnings Limit (affects who gets qualifying years)
How to Stay Informed
Official Sources
- GOV.UK: Official State Pension information
- DWP: Department for Work and Pensions announcements
- Budget announcements: Spring and Autumn statements
- Pension Service: 0800 731 0469
Key Dates
- April each year: New tax year begins, rates updated
- September-November: Triple Lock element announced (based on September inflation/earnings data)
- March (Budget): Confirmation of rates for next tax year
What Matters to You
Stay informed about changes that affect your situation:
- If approaching State Pension age: Watch for pension age changes
- If living abroad: Watch for changes to frozen pension countries
- If filling gaps: Watch for deadline extensions or changes to voluntary contribution rates
- If still working: Watch for NI threshold changes
Rumours vs Reality
Common Myths
Myth: "State Pension age is increasing to 70 next year"
Reality: State Pension age is currently 66, gradually increasing to 67 by 2028. Age 68 won't be reached until 2044-2046. Any further increases require parliamentary approval years in advance.
Myth: "The government is scrapping the Triple Lock"
Reality: The Triple Lock remains in place for now. While its long-term future is debated, changes would be announced well in advance and require legislation.
Myth: "National Insurance is being abolished"
Reality: While some NI classes have been reformed (e.g., Class 2 for self-employed), NI remains the core mechanism for funding State Pension.
Myth: "Brexit means my State Pension won't be uprated in EU countries"
Reality: The UK-EU Trade and Cooperation Agreement maintains uprating for those living in EU countries.
Impact of Recent Changes
2025/26 Rate Increase
The 4.1% increase (£9.05/week) means:
- Someone claiming full State Pension gets an extra £471/year
- Helps maintain purchasing power against inflation
- Voluntary NI rates also increased
Extended Gap-Filling Deadline
The April 2025 deadline for 2006-2017 gaps creates urgency:
- Estimated 1-2 million people could benefit
- Could be worth thousands per year in extra State Pension
- High demand for Future Pension Centre services
State Pension Age 66→67 Transition
People born 1960-1961 face complex planning:
- State Pension age varies by month of birth
- Creates a "moving target" for retirement planning
- May affect when they can access private pensions