DWP to Withhold £241 Payments from Older Pensioners Soon
In April 2026, the state pension is set to rise by approximately 4.7%, bringing the new state pension total to £12,534 annually. However, not all pensioners will receive the same benefit under this adjustment.
DWP Payment Changes for Older Pensioners
The Department for Work and Pensions (DWP) will increase the full new state pension from £230.25 per week to £241.05 per week. This results in an increase of £10.80 per week, or £562 per year. In contrast, those on the basic state pension will see a smaller increase from £176.45 per week to £184.75, amounting to £56 less each week compared to those on the new state pension.
Pension Adjustment Mechanism
Under the triple lock system, the state pension normally rises every April based on the highest of three metrics:
- Average wage growth from May to July
- September’s Consumer Prices Index (CPI) inflation
- A flat increase of 2.5%
This year, average wage growth stands at 4.8%, making it the determinant factor for the upcoming increases.
Eligibility for the New State Pension
Currently, around 4.7 million pensioners, representing 36%, receive the new state pension. To qualify for this full amount, individuals must have reached the state pension age after April 2016 and have 35 qualifying years of National Insurance contributions. Those with at least 10 qualifying years may receive a portion of the state pension.
For pensioners with gaps in their National Insurance records, there is an option to make voluntary contributions to enhance their eventual state pension payments.
Financial Considerations for Pensioners
Experts advise that while the state pension increase is beneficial, it may still fall short of providing a comfortable retirement. Many individuals may have additional workplace or personal pension savings that can be tapped into for more financial security.
Moreover, contributing more funds into these pension pots can help boost savings while providing tax relief from the government.
