Older state pensioners set for £7.20 weekly extra from DWP

Older state pensioners set for £7.20 weekly extra from DWP State Pension rates will rise under the triple lock guarantee. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Claire Schofield 10:08, Mon, Oct 26, 2026 Updated: 10:23, Mon, Oct 26, 2026 A 3.9% increase would give someone on a full basic State Pension an extra £7.20 per week (Image: Getty) Older state pensioners are on course for a £7.20 weekly cash boost from the Department for Work and Pensions (DWP) next April under the triple lock guarantee. State Pension rates increase at the start of every new tax year on April 6 in line with the triple lock , a UK government guarantee that sets the new payment rates based on the highest out of three key measures. These are the consumer price index (CPI) measure of inflation (measured for September the year before), average wage growth between May and July the previous year, or 2.5%. In the current 2026/27 tax year, both the new and basic State Pension increased in line with average wage growth, as this was the highest out of the three measures at 4.8%. Article continues below ADVERTISEMENT It is expected that average wage growth will once again be used to set next year’s State Pension rates, as this has been revealed as the highest out of the three measures, meaning rates will be boosted by 3.9%. Get personal finance news, money saving tips and advice plus selcted offers and competitions I would like to receive emails from the Daily Express featuring our latest products, services, offers, and promotions from across the Reach Plc family . Subscribe Invalid email You agree you are 18 or over. We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. You can unsubscribe at any time. More Info . Older state pensioners set for £3,047 less from DWP in 2027 HMRC sending tax bills to state pensioners with Winter Fuel Payments The Office for National Statistics (ONS) revealed that the rate of CPI inflation was 3.5% in September, accelerating from 3.1% in August, but this doesn't beat the 3.9% wage growth figure that has already been published. It is expected that wage growth wil be confirmed as the measure to set the 2027 to 2028 State Pension rates in the Budget on Wednesday, October 28, which would take the basic State Pension from £184.90 per week up to £192.10. Article continues below ADVERTISEMENT This would give older pensioners who are eligible for the full amount an extra £7.20 per week, which over a full year amounts to an income boost of up to £374.40 per year. Article continues below ADVERTISEMENT Of course, these figures are based on the maximum possible amount for those with a full qualifying National Insurance record, so those without enough qualifying years will receive less. Men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension, and the amount you get depends on your National Insurance record. To get the full amount, a man born between 1945 and 1951 usually requires 30 qualifying National Insurance years, while men born before 1945 require 44 qualifying years. For women, you’ll need 30 qualifying years if you were born between 1950 and 1953, or 39 qualifying years if you were born before 1950. As for pensioners who get the new State Pension, a 3.9% increase would give pensioners up to £9.40 per week if they get the full amount, taking the weekly rate from £241.30 up to £250.70 per week. For those entitled to the maximum payment, this would provide an annual boost of £488.80 in the 2027 to 2028 tax year. As the personal tax allowance has been frozen at £12,570 since 2021, it means state pensioners will be caught within the tax net for the first time. Rachel Vahey, head of public policy at AJ Bell, said: “Pensioners are set to receive just shy of £500 extra in their state pension next year. “The full new state pension is set to surge past £13,000 for the first time, leaving the frozen £12,570 personal allowance trailing in its wake. “The Government has promised that those living solely on a state pension above the allowance will not pay income tax on it – but the crucial detail on how that will work is still missing. “Pensioners are now looking to next week’s Budget to fill in the blanks.” So far, the Government has said pensioners who are wholly dependent on the new State Pension – with no private pension – or the old basic State Pension, “with no increments”, will not have to pay tax. It’s still unclear exactly how the policy will work, but the Government is expected to set out further details in the Budget on October 28. Minister for Pensions Torsten Bell said: “In line with the commitment made at Budget 2025, pensioners who only just exceed the personal allowance will not have the administrative burden of paying small amounts of tax in this Parliament. The Chancellor will set out further details on how that commitment will be delivered at the Budget.” State Pension Triple lock DWP Andy Burnham John Healey Budget 2026 Inflation Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments