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UK State Pension Rises 4.8% as Pension Age Starts Climb to 67

The increase boosts millions now, with payouts nearing the frozen income tax threshold.

Overview

  • The 4.8% uplift, which took effect Monday, raises the full new State Pension to £241.30 a week and delivers up to £575 this year for more than 12 million people.
  • Pension Credit also rises by 4.8%, lifting the standard minimum guarantee to £238 a week for single claimants and £363.25 for couples, which can unlock help with housing, council tax, NHS costs and TV licences.
  • The State Pension age has begun a monthly step-up from 66 to 67 for those born from 6 April 1960 to 6 March 1961, so even a one‑day difference in birth date can shift the claim date by weeks.
  • Because the new full pension now sits close to the £12,570 personal allowance, ministers have pledged that people with only the State Pension will not face small tax bills this Parliament, with HMRC to set out how this will work.
  • The government estimates uprating will add about £11 billion to 2026/27 spending, while the Institute for Fiscal Studies says the age rise could save around £10 billion a year by the end of the Parliament but risks higher poverty for affected groups.