State Pension Rises 8.5% in 2024: What You Will Receive — and What's Coming in 2025
From April 2024, the new State Pension increased by 8.5% — the largest cash increase since the triple lock mechanism was introduced. That rise took the weekly rate from £203.85 to £221.20, equivalent to £11,502 per year. For pensioners who rely on the State Pension as their primary or only income, this was a meaningful uplift — though one that still leaves the payment below the poverty line for a single person paying rent.
The 8.5% figure was driven by the earnings element of the triple lock — the mechanism that guarantees the State Pension will rise by whichever is highest among earnings growth, inflation (CPI), and 2.5%. Earnings growth for the relevant measurement period came in at 8.5%, CPI at around 6.7%, so the earnings figure won. For 2023-24, the increase had been 10.1% (CPI-driven). Two consecutive record increases have raised the State Pension by almost a fifth in two years.
The basic State Pension (pre-2016 retirees)
The increase also applied to the basic State Pension, which covers people who reached state pension age before April 2016 under the old two-tier system:
- 2023-24: £156.20/week
- 2024-25: £169.50/week (up 8.5%)
This group also receives Pension Credit top-ups if their total income is below the minimum guarantee threshold, which also increased. Understanding which system you are under — new or old — matters because the amounts and qualifying conditions differ.
How the triple lock is calculated
Each year, the Department for Work and Pensions uses three measures:
- Average earnings growth (measured to May of the previous year)
- CPI inflation (measured to September of the previous year)
- A guaranteed minimum of 2.5%
The highest of the three is applied to both the new and basic State Pension. The mechanism has been in place since 2011, with a brief suspension in 2022-23 when the earnings figure was distorted by pandemic-era statistical effects and the government applied a modified measure.
What is the State Pension in 2025-26?
For 2025-26, the new State Pension rose further to £230.25 per week (£11,973 per year) — an increase of 4.1% driven by the earnings growth measure. While smaller than the 2024 uplift in percentage terms, it still represents a notable rise and keeps the pension on track to eventually exceed the personal allowance of £12,570 — at which point pensioners with no other income would begin paying income tax on their pension.
Use our State Pension calculator to see exactly how your State Pension interacts with any private income or part-time earnings you have.
Conclusion
The 8.5% rise in 2024 was the triple lock working exactly as intended — protecting pensioners from real income losses during a high-inflation, high-wage-growth period. The mechanism is politically contentious given its fiscal cost, but for pensioners on fixed incomes, the increases over 2023 and 2024 provided real protection against rising living costs. Looking ahead, the trajectory of State Pension income is steadily approaching the income tax personal allowance, which will create tax complexity for an increasing number of pensioners in the coming years.