Millions on state pension could get £634 DWP boost next year – check if you're eligible

Scottish Sun

24-06-2025

Read on to find out how else you can boost your state pension.
PENSION HELP Millions on state pension could get £634 DWP boost next year – check if you're eligible
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MILLIONS of people could get a cash boost of over £600 to their state pension next year.
The benefit is on track to increase by 5.3% - or £634 - in 2026, according to the latest Triple Lock forecasts.
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State pensioners could be in line for a cash boost next year.
Credit: Alamy
The Triple Lock system sees the state pension rise each year in line with whatever is highest out of: wages from May to July, 2.5% or September inflation.
Latest ONS wage growth figures stand at 5.2% for regular earnings (excluding bonuses) and 5.3% for total earnings (including bonuses).
If wage growth holds until September, when the Triple Lock is calculated, then this would be the figure used to increase the state pension.
That would mean the new state pension would rise by £634 next year, from £11,973 to £12,607.
This means that state pension payments would topple over the £12,500 Personal Allowance threshold. This is the amount you can earn before paying tax.
This means pensioners would have to pay tax on part of their state pension income, meaning they would essentially have to hand some of the benefit straight back to the tax man.
Who is eligible for state pension boost?
The state pension age is currently 66, so people born after April 5, 1951 and women born after April 5, 1953 will be in line for a boost from the Department of Work and Pensions (DWP) next year.
Hargreaves Lansdown head of retirement analysis Helen Morrissey told The Sun: "The triple lock aims to increase the state pension by whichever is the highest of 2.5%, inflation or average wages.
"If we were in line to get an increase in the range of current average wages (5.3%) then that would be applied to those receiving the new state pension as well as the basic state pension.
"However, for those who also receive top ups such as the additional state pension it's worth saying that these extra elements are not increased using the triple lock -instead they are increased by CPI inflation.
"The key inflation and wage figures used for the triple lock calculation won't be released until Autumn so we will wait to see what direction both figures go in."
The state pension age is set to gradually increase starting from May next year, and will be set at 67 from March 6, 2028 onwards.
The change will affect millions of people born between April 6, 1960 and April 5, 1977.
Other ways to boost your state pension
Delay your state pension
Delaying your pension if you don't need it straight away could set you up for a bigger payout later.
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You'll need to defer for at least nine weeks. But for every nine weeks you delay your pension, you'll get a 1% increase on the amount you receive, according to gov.uk.
This means that for every year you delay, you'll boost your payout by almost 5.8%.
The extra amount will be paid out by DWP with your regular State Pension payment.
Claim NI credits
If you're a parent getting Child Benefit for a child under 12, you automatically receive National Insurance (NI) credits.
However, if you're a grandparent looking after a child so their parent can work, the parent can sign a form to pass on their NI benefits to you.
Pension credit
Millions of people who are eligible for pension credit do not claim it, and the DWP estimates that up to £2.1 billion in Pension Credit goes unclaimed every year.
Pension Credit gives you extra money to help with living costs, such as the Winter Fuel Payment, if you're over state pension age and on a low income.
You can start your application for Pension Credit up to four months before you reach state pension age. You can also apply any time after you reach pension age, but your application can only be backdated by three months.
You can check if you're eligible on the government website.
Pension Credit explained
Pension Credit is a benefit which gives you extra money to help with your living costs if you're on a low income in retirement.
It can also help with housing costs such as ground rent or service charges.
You may be able to get extra help of you're a carer, have a disability, or are responsible for a child.
It also opens up access to lots of other benefits such as the warm home discount scheme, support for mortgage interest, council tax discounts, free TV licences once you're over 75, and help with NHS costs.
To qualify, you need to be over state pension age and live in England, Scotland or Wales.
If you have a partner, you need to include them on your claim.
Pension Credit tops up: your weekly income to £218.15 if you're single
your joint weekly income to £332.95 if you have a partner
However, even if your income is higher, you might still qualify if you have a disability or caring responsibilities.
There is also another element to Pension Credit called savings credit. To get this, you need to have saved some money towards your retirement.
You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple.
If you have more than £10,000 in savings, the government uses a calculation to work out how much it adds to your income.
Every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
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