Overview
- State pension rates will rise by 4.8% from April 2026 under the triple lock, with the full new rate edging closer to the frozen £12,570 personal allowance.
- Pension Credit will increase by 4.8% to roughly £238 a week (about £12,376 a year) from April 2026, acting as a gateway to help such as Housing Benefit, council tax reductions and free TV licences for eligible over‑75s.
- Chancellor Rachel Reeves said people whose only income is the state pension will not pay income tax during this Parliament and will not be required to complete tax returns, with officials developing a simple workaround.
- Analysts and former minister Steve Webb warn of a potential two‑tier outcome because around 2.5 million on the old system already pay tax and those with small private pensions would still face liabilities.
- To boost take‑up, the government and Age UK are targeting potential Pension Credit claimants, including sending letters to identified households, after DWP data showed about £2.5bn went unclaimed last year.