From today, millions of pensioners will see their State Pension rise by up to £470 a year, thanks to the government’s firm commitment to the pensions Triple Lock. This policy ensures pensions

rise each year by whichever is highest: inflation, average earnings, or 2.5%. As a result, the basic and new State Pensions are increasing by 4.1%—well above current inflation.

Over the course of this Parliament, the Triple Lock is expected to boost pensions by up to £1,900 in total.

In addition to support for pensioners, more than 5 million working-age households on benefits like Universal Credit will see an average increase of £150 this year. Disability benefits, Carer’s Allowance, and Child Benefit are also going up by a similar amount.

Workers are also set to benefit from changes to minimum wages. The National Living Wage has increased to £12.21 for those aged 21 and over, while the National Minimum Wage for those aged 18 to 20 has risen to a record £10 per hour. Around 3 million workers will gain from these increases, with full-time eligible workers seeing an annual boost of around £1,400.

These changes are part of the government’s broader “Plan for Change,” which aims to grow the economy, increase household incomes, and rebuild public services such as the NHS.

Government leaders speak out

Work and Pensions Secretary Liz Kendall said:

“Our ironclad commitment to the Triple Lock gives pensioners across the country the certainty and security they need to live a full life in retirement.

We are putting more money in people’s pockets and driving up household income as part of our Plan for Change”.

Minister for Pensions Torsten Bell said:

“Raising the State Pension and rescuing the NHS – these are this government’s priorities to give all pensioners the dignity they deserve in their retirement. Those who have worked hard throughout their lives, paying into the system, are owed nothing less.

We’re improving the lives of millions of pensioners through our £7.84 billion additional funding for the State Pension this year. That means up to £470 extra in pensioners’ pockets from this week and comes alongside our work to boost Pension Credit uptake, and the £26 billion we’ve invested in the NHS that has seen waiting lists in England fall for 5 months in a row”.

Chancellor of the Exchequer Rachel Reeves said:

“With today’s increase in working-age benefits, and our ironclad commitment to pensioners through the Triple Lock, we are making the decisions that support those who need it in Britain, putting money into people’s pockets and delivering our Plan for Change”.

Additional support measures

Pension Credit uptake has surged, with 50,000 new awards since the summer—a 64% increase over the same time last year. Pension Credit, worth about £4,300 annually, also unlocks support with housing, council tax, and free TV licenses.

Household Support Fund extended: £742 million will be available from April 2025 to March 2026, helping with essentials like food, energy, and bills.

Welfare reform proposals are also in motion, aimed at modernizing the system, reducing long-term costs, and ensuring support reaches those truly in need—while also encouraging employment and growth.

Together, these measures represent one of the largest boosts in income support in years, helping both pensioners and working families across the UK.