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State Pension to Rise 4.8% in April 2026

3/26/2026

24 4 Full Breakdown

Summary

Story summary

The Department for Work and Pensions will raise the State Pension by 4.8% from April 2026, increasing full new State Pension by £575 annually and basic by £439.
The Department for Work and Pensions will send updated-payment letters to pensioners born before 1960.
Eligible disability-benefit pensioners may receive an extra £344 per month.
Tax thresholds have remained frozen since April 2021, pushing many pensioners into higher income tax.

History

Historical Context

The UK government introduced the new State Pension system on April 6, 2016, establishing a flat-rate pension of £155.65 per week for future retirees. This reform aimed to simplify benefits for millions, including 12.5 million pensioners. However, frozen tax thresholds since 2021 have pushed many into higher tax brackets, underscoring ongoing challenges in ensuring financial security for retirees amidst rising living costs.

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Story summary

The Department for Work and Pensions will raise the State Pension by 4.8% from April 2026, increasing full new State Pension by £575 annually and basic by £439.
The Department for Work and Pensions will send updated-payment letters to pensioners born before 1960.
Eligible disability-benefit pensioners may receive an extra £344 per month.
Tax thresholds have remained frozen since April 2021, pushing many pensioners into higher income tax.

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