The UK state pension is set for another increase in April 2026 under the government's triple lock. With average weekly earnings growth running at 4.7% in the May–July 2025 period, that figure is poised to drive the state pension uprating for 2026/27; unless September inflation comes in higher, which is unlikely (it would have to jump near one percent).
For most retirees and those approaching retirement, this prompts two vital questions: how much will my state pension rise, and what does it mean for tax on my pension income?
What is the triple lock and why does 4.7% matter?
The "triple lock” guarantees that the state pension increases each April by the highest of:
- Average earnings growth (measured by ONS "total pay including bonuses” for May–July),
- CPI inflation in the September prior to uprating, or
- 2.5%.
This policy is designed to ensure the state pension keeps pace with workers' pay or living costs, whichever is rising fastest. In September 2025, the Office for National Statistics reported that total pay including bonuses rose 4.7% in the three months to July 2025. Unless September CPI exceeds 4.7% (or the 2.5% floor is higher, which it isn't), 4.7% becomes the triple lock uprating for April 2026.
The last published CPI figure is 3.8% for the 12 months to July 2025. It was 3.6% the month before, so it is rising but slowly. The September figure will be for the 12 months to August 2025 and will be the one used in deciding the pension rise. It gets a little confusing as there are two CPI metrics (CPI and CPI-H). For the State Pension triple lock, you need CPI, not CPI-H.
CPI-H is CPI but including owner occupiers' housing costs and is the ONS's preferred measure for general inflation analysis, however it is not the measure used in the triple lock formula.
The Department for Work and Pensions (DWP) has reiterated the government's commitment to keeping the triple lock for this Parliament, anchoring expectations for the 2026 increase.
Current state pension rates and how they got here
There are two main rates to know:
- The full new State Pension (for people reaching state pension age on/after 6 April 2016).
- The full basic State Pension (for those who reached state pension age before that date).
What is the difference between Basic State Pension and the New State Pension?
The legacy Basic State Pension was the "old" system for people who reached State Pension age before 6 April 2016. It comprised of a Basic State Pension (full rate if you had 30 qualifying National Insurance years) plus any Additional State Pension you built up (SERPS/S2P), unless you were "contracted out".
The New State Pension was introduced on 6 April 2016 for people reaching State Pension age on or after that date. It is a Single flat-rate amount when you have 35 qualifying NI years, with transitional calculations so people aren't disadvantaged by old entitlements or periods of contracting out.
The old system was complex (basic pension + a separate earnings-related Additional State Pension, contracting out rules, and different qualification thresholds). The new system is a single flat-rate amount, easier to understand and to plan around. The reform aligned entitlements more clearly with NI records and removed automatic earnings-related accruals in the state system (moving that role more to workplace and personal pensions).
For 2025/26, the full rates are:
- New State Pension: £230.25 per week (£11,973 a year).
- Basic State Pension: £176.45 per week (£9,176 a year).
- These were set by the DWP's annual uprating and published on GOV.UK.
Looking back, the new State Pension was introduced in April 2016 at £155.65 per week. Since then, the triple lock has driven a series of increases: £159.55 (2017/18), £164.35 (2018/19), £168.60 (2019/20), £175.20 (2020/21), £179.60 (2021/22), £185.15 (2022/23), £203.85 (2023/24), £221.20 (2024/25), and £230.25 (2025/26).
Over the same years, the basic State Pension moved from £119.30 (2016/17) to £176.45 (2025/26). This history demonstrates the triple lock's compounding effect on state pension levels.
Why is the New State Pension paying more than the Basic State Pension?
The headline full amount under the new system is set higher than the full basic State Pension because the new system replaced not only the basic pension but also the expectation of building up an earnings-related Additional State Pension in future. The new system generally has no new accrual of an earnings-related state top-up.
Triple lock uprating applies to both.
What the state pension could rise to in April 2026
If 4.7% is confirmed as the highest triple lock component, applying it to the 2025/26 rates and using DWP's standard rounding practice (most weekly rates rounded to the nearest 5p) produces the following projections for 2026/27:
- Full new State Pension: roughly £241.05 per week (~£12,534.60 per year).
- Full basic State Pension: roughly £184.75 per week (~£9,607 per year).
That equates to about a £10.80 weekly rise for the new State Pension (around £561.60 more per year) and about £8.30 weekly for the basic State Pension (around £431.60 more per year). You may have seen headlines from some other media that are reporting that pensioners could see an increase "up to £562” in April 2026. That's based on this calculation.
Will the state pension exceed the personal allowance, and what does that mean for pension tax?
The Personal Allowance, the amount most people can earn before paying income tax, is £12,570 in 2025/26 and remains at that level per HMRC's published rates and the ongoing freeze. A projected full new State Pension of around £12,534 would be about £35 under the personal allowance. On that narrow arithmetic, the state pension alone would not exceed the allowance in 2026/27.
However, many pensioners have additional taxable income; occupational or personal pensions, part-time earnings, rental income, or taxable savings interest beyond the Personal Savings Allowance. Even modest amounts can push total income over £12,570, triggering some income tax. You can try this yourself using our multiple income tax estimate calculator. You just enter your pension income as 'NIC exempt' income.
Headlines are warning that the state pension will "tip” pensioners into tax, and yes, while the full state pension alone still sits fractionally beneath the personal allowance on current projections, the gap is tiny. In practice, a small additional income stream can create a pension tax liability.
How is the state pension taxed in practice?
A crucial point for retirement planning: the state pension is taxable, but DWP does not deduct tax at source. Instead:
- If your only income is the state pension and it remains below your personal allowance, no income tax is due.
- If you have other PAYE income (for example, a private or workplace pension), HMRC typically adjusts the tax code on that other income to collect the tax due on your state pension. Your private pension PAYE thus picks up the tax on your state pension.
- If your state pension alone exceeds your personal allowance, HMRC will bill you (or adjust your code in-year when possible), because tax cannot be taken directly from the state pension payments.
Aren't there higher tax-free allowances for older people?
No. Age-related personal allowances were abolished, so everyone now receives the same standard personal allowance regardless of age. There are, however, a few important reliefs still relevant to some pensioners:
- Married Couple's Allowance (MCA): only available if at least one spouse/civil partner was born before 6 April 1935. It reduces tax by 10% of the MCA amount within income limits.
- Blind Person's Allowance: an extra tax-free amount for those registered blind/severely sight impaired.
- Marriage Allowance: lets a lower-earning spouse or civil partner transfer 10% of their unused personal allowance to the other partner, subject to eligibility.
Planning pointers for state pension and pension tax
Check your State Pension forecast and NI record. Ensure you have the qualifying years to reach the full new State Pension. Up to 35 qualifying years are needed for the headline amount. Missing years may be filled with voluntary NI contributions (subject to deadlines and advice).
Budget for tax if you have other retirement income. With the new State Pension now very close to the personal allowance, even modest private pensions or interest can create a small income tax bill. HMRC will usually collect via your other PAYE pension.
Review your PAYE tax codes. If you take a private pension, your code should reflect your state pension so the right tax is collected over the year. If it doesn't, contact HMRC to correct it and avoid under/overpayments.
Consider allowances and transfers. If eligible for Married Couple's Allowance or Blind Person's Allowance, claim them. For many couples, the Marriage Allowance transfer can reduce tax.
Monitor inflation and future upratings. The triple lock compares earnings, inflation and 2.5% each year, so future increases depend on the economic backdrop and policy continuity.