Overview
- From April 2026, the full new State Pension increases to £241.30 a week and the full basic rate to £184.90, lifting monthly payments by roughly £44 and £36 respectively.
- The higher payments push many close to the frozen £12,570 personal allowance, with experts noting the full new State Pension is expected to exceed it from April 2027.
- Ministers have pledged that people whose sole income is the State Pension will not face small income tax bills, and HMRC told MPs it needs new legislation and has mobilised a project team, with changes expected via the next finance bill.
- Winter Fuel Payments received by pensioners with total income above £35,000 will be clawed back through PAYE, typically about £17 a month in 2026/27 and about £33 a month in 2027/28 for a £200 payment, with around two million affected.
- DWP data show Pension Credit claims fell about 36% year on year to late February 2026 even as approval rates rose to 61%, leaving many eligible low‑income pensioners still not claiming this top‑up.