The Department for Work and Pensions (DWP) is preparing to raise the Basic State Pension to £184.90 per week starting in 2026, marking a nearly 5% increase from the current rate of £176.45.
This adjustment falls under the Triple Lock policy, which guarantees that pension payments grow by the highest of three factors: 2.5%, inflation, or average earnings growth.
The rise will primarily benefit state pensioners born before 1953, particularly women, ensuring that their income keeps pace with the rising cost of living.
Expert Insights on the Triple Lock and Earnings Growth
Financial expert Martin Lewis clarified that the State Pension is projected to increase by around 4.8% in April 2026, with the latest earnings data confirming this figure as the highest of the three benchmarks in the Triple Lock formula.
According to Lewis:
- The new full State Pension will increase from £230.25 to £241.30 per week.
- The old State Pension, for retirees who reached pension age before April 2016, will rise from £176.45 to £184.90 per week.
This change translates to a yearly total of £12,548 for those receiving the full new State Pension, which is just £22 below the frozen personal tax allowance threshold.
As a result, pensioners may soon face tax liabilities for the first time if they rely solely on their State Pension, since personal allowances remain frozen and pensions continue to rise.
Implications for Pensioners
Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown, emphasized that retirees can expect modest but steady growth in their weekly payments starting next April.
She explained:
- Those on the full new State Pension will likely receive £241.30 per week.
- Those on the full basic State Pension will receive £184.90 per week.
Morrissey noted that the final confirmation of the increase depends on inflation figures, which are expected to be released soon. However, with inflation currently hovering around 3.8%, it appears that average wage growth will remain the determining factor in the 2026 adjustment.
Expected 2026 State Pension Rates
| Type of Pension | 2025 Weekly Rate | Expected 2026 Rate | Annual Value (2026) |
|---|---|---|---|
| New State Pension | £230.25 | £241.30 | £12,548 |
| Basic (Old) State Pension | £176.45 | £184.90 | £9,604.80 |
The 2026 State Pension increase ensures that older pensioners continue to receive fair adjustments in line with the DWP’s Triple Lock guarantee.
While this rise will provide much-needed financial relief amid ongoing economic challenges, it could also push more retirees into the taxable income bracket, given that the personal allowance remains frozen.
Pensioners are advised to monitor official updates as final inflation data could still slightly adjust the rates.
FAQs
Who qualifies for the £184.90 weekly Basic State Pension?
Pensioners who reached the state pension age before April 2016—mainly those born before 1953—are eligible for the Basic State Pension.
What determines the annual increase in State Pension?
The Triple Lock system ensures pension payments rise by the highest of inflation, average earnings growth, or 2.5% each year.
Will pensioners pay taxes on the new State Pension amount?
Yes. Since the personal tax allowance is frozen and pension amounts are increasing, many pensioners could start paying tax on their State Pension income in 2026.
