UK State Pension to Rise in August 2025 – Check Your New Payment Amount From April 2025, the UK State Pension received its annual boost under the UK’s triple-lock policy, resulting in the full new State Pension rising to £230.25 per week and the basic (old) State Pension increasing to £176.45 per week. Although this financial gain technically began in April, it continues to provide meaningful increases for pensioners throughout August 2025 and beyond. For many retirees, this boost brings increased financial breathing room amid rising living costs, household bills, and inflationary pressures.
This comprehensive article explores everything you need to know: how much you’ll now receive, who qualifies, how it’s calculated, what actions you can take to enhance your entitlement, and what’s on the horizon for pensioners.
What’s the New Weekly State Pension Rate from April 2025?
Under the UK’s triple-lock system, the State Pension rises each year by the highest of three metrics: inflation (CPI), average earnings growth, or 2.5%. For April 2025, average earnings growth prevailed at 4.1%, hence the uplift. Consequently, the full new State Pension—applicable to those reaching State Pension age on or after 6 April 2016—increased from £221.20 to £230.25 weekly, equating to around £11,973 annually Meanwhile, the basic State Pension—for those who reached pension age before April 2016—rose from £169.50 to £176.45 per week, adding approximately £360–£470 to annual income
New vs. Old: What the Numbers Look Like
| Pension Type | Weekly Rate (2024/25) | Weekly Rate (2025/26) | Approx. Annual Income |
|---|---|---|---|
| New State Pension | £221.20 | £230.25 | £11,973 |
| Basic (Old) Pension | £169.50 | £176.45 | £9,175 |
These figures reflect the full standard rates—actual payment may vary depending on individual NI contribution records and eligibility for protected or additional amounts
Who Receives Which Pension?
Determining your pension depends on when you reached State Pension age:
- New State Pension (full rate £230.25/week): for those reaching pension age on or after 6 April 2016, requiring 35 qualifying years of National Insurance contributions
- Basic State Pension (full rate £176.45/week): for those who reached pension age before April 2016, typically requiring 30 qualifying years
Partial pensions are possible—with a minimum of 10 qualifying years required—calculated proportionally based on your years of contributions
Why This Matters Now, in August 2025
Although the increase began in April, the continued effect into August 2025 is significant for pensioners budgeting and planning. These higher payments help offset escalating costs—energy, food, medication—and preserve purchasing power amid frozen tax thresholds and inflation. The clarification provided in mid-year news helps retirees stay informed and financially prepare
Can You Increase Your Pension Further?
Yes. If you’re not receiving the full amount, one way to increase your pension is by filling gaps in your National Insurance record. Many retirees—around 45%—do not receive the full new State Pension, and over 200,000 receive less than half You can make voluntary Class 3 contributions (for the last six tax years) to boost your pension by approximately £340 per year per gap filled, with a strong long-term return
Another Option: Deferring Your Pension
By choosing to defer your State Pension, you can increase your future payments significantly:
- New State Pension: deferring for one year adds about 5.8% income boost.
- Old State Pension: provides around 10.4%, or a lump sum option
However, deferral isn’t suitable for everyone—it works best for healthy individuals with alternate income sources or those planning long-term.
Other Related Benefits and Impact
In addition to the State Pension rise, Pension Credit (means-tested top-up) has also increased in line with the triple lock. This can be crucial for those with minimal NI records or on low incomes Meanwhile, other benefits—like Universal Credit and Child Benefit—have increased only by inflation (1.7%)
Keep in mind that as your pension income rises, you may cross the £12,570 personal allowance threshold, meaning income tax may become payable for the first time
What Lies Ahead: Possible Future Increases
Looking forward, September 2025 CPI inflation could rise to 4%, potentially making next year’s pension increase even larger. This might raise the full new State Pension to around £239.46 per week, costing the government an estimated £2.1 billiol This underscores both the value of the triple-lock mechanism for retirees and the fiscal pressures it imposes on government.
What You Should Do Now
- Check your NI record on GOV.UK and see if voluntary contributions could help.
- Assess whether deferral suits your circumstances, considering health, taxation, and income needs.
- Review Pension Credit eligibility, especially if your income is modest.
- Monitor updates for Autumn Budget 2025, which may influence pension policy and tax thresholds
- Consider tax implications, especially if your income rises above personal allowance levels.