The annual uprating of State Pensions and benefits was implemented on April 7, with government departments sending letters to all claimants every year advising them of their new payment rates
The annual uprating of State Pensions and benefits was implemented on April 7, with government departments sending letters to all claimants every year advising them of their new payment rates
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Kieran Isgin Money & Lifestyle writer
05:00, 20 Apr 2025
The annual increase in State Pensions and benefits, administered by the Department for Work and Pensions (DWP), and HM Revenue and Customs (HMRC), was put into effect on April 7. Government departments send out letters to all claimants each year, informing them of their new payment rates.
However, many may have not yet received their State Pension uprating letter from the DWP, leading to concerns about not receiving the new, higher rates. It’s crucial to understand that this letter is purely informational and for your own records; it does not impact payments as the uprating is applied automatically.
While DWP letters are still being dispatched, it’s worth noting that there are currently 13 million people of State Pension age across Great Britain, with 11 million due to receive the correspondence.
If you haven’t received the letter yet, remain patient as it should arrive before the end of this month. If it doesn’t, it may be worth checking that the DWP has your correct contact details, particularly if you’ve moved since the last uprating notice was issued in 2024.
For those receiving the State Pension, you can reach the Pension Service at 0800 731 0469. The phone lines are open from 8am to 6pm Monday to Friday, but are closed on Good Friday and Easter Monday, reports the Daily Record.
State Pension payment rates 2025/26
State Pension payouts are set to rise from April 7, 2025, with new rates indicating a 4.1% increase for both New and Basic State Pensions, while additional portions such as deferred rates will see a more modest boost of 1.7%.
Full New State Pension
- Weekly payment: £230.25 (from £221.20)
- Four-weekly payment: £921 (from £884.80)
- Annual amount: £11,973 (from £11,502)
Full Basic State Pension
- Weekly payment: £176.45 (from £169.50)
- Four-weekly payment: £705.80 (from £678)
- Annual amount: £9,175 (from £8,814)
In an effort to assist pensioners during the cost of living crisis, the Department for Work and Pensions (DWP) is dispatching letters outlining the updated pensions and promoting the often underclaimed Pension Credit, which could add an average of £4,300 to annual incomes throughout the 2025/26 financial year.
Every pensioner is being directly informed about their potential entitlement to this means-tested benefit via the yearly update on their State Pension, with the DWP’s goal to maximise awareness and uptake among elders.
Pensions Minister Torsten Bell emphasised the importance of the initiative: “As part of the annual State Pension uprating exercise, around 11 million pensioners will receive a leaflet promoting Pension Credit along with their State Pension uprating letter.”
The DWP is keen to urge all older individuals, regardless of their marital status, to take full advantage of available financial aid in 2025 as a means to supplement their income amidst rising living costs.
Due to changes in eligibility rules related to the annual Winter Fuel Payment, only recipients of specific benefits, including Pension Credit, were awarded the 2024/25 payment.
Pension Credit, the most under-claimed benefit in the UK, is designed to provide additional financial support for older people on a low income, whether they are single or part of a couple.
Many older individuals mistakenly believe that having savings or owning their home disqualifies them from receiving this means-tested benefit. However, Pension Credit can also provide assistance with housing costs, heating bills and Council Tax.
Even an award as small as £1 per week can unlock further support.
Here’s a brief overview of the benefit, including who should check their eligibility, how to do so, potential amounts you could receive, and where to find help with completing the form.
How to check eligibility for Pension Credit
Elderly individuals, or their friends and family, can swiftly check their eligibility and get an estimate of what they might receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can reach out to the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
More information about claiming Pension Credit can be found on GOV.UK here.
Other help if you get Pension Credit
If you’re eligible for Pension Credit, you can also access other forms of assistance, such as:
- Help with your heating costs through the Warm Home Discount Scheme, Winter Fuel Payments or Pension Age Winter Heating Payment
- Housing Benefit if you rent the property you live in
- Council Tax discount
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Support for Mortgage Interest if you own the property you live in
- A discount on the Royal Mail redirection service if you are moving house
- Free TV licence if you are aged 75 or over
How to submit a claim
You can initiate your application up to four months prior to reaching State Pension age. You can make a claim any time after you reach State Pension age, but your claim can only be backdated for three months.
This means you could receive up to three months of Pension Credit in your first payment if you were eligible during that period.
You will require:
- your National Insurance number
- details about your income, savings and investments
- your bank account details, if you’re applying via phone or post
If you’re backdating your claim, you’ll need information about your income, savings and investments on the date you want your claim to commence.
Apply online
You can utilise the online service if:
- you have already claimed your State Pension
- there are no children or young people included in your claim
To verify your entitlement, call the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to determine how much you could receive.
