Millions of pensioners across the UK are set to receive a confirmed increase in their state pension payments next year, but the amount they get will depend on which system they are part of.
Two-Tier System Creates Payment Gap
The Department for Work and Pensions (DWP) has confirmed that from April 2026, the state pension will rise under the triple lock mechanism. However, this will result in two different increases. Pensioners who retired before April 2016 on the old basic state pension will receive an annual boost of £440. In contrast, those on the newer, full state pension will see a larger increase of £575 for the 2026/27 financial year.
This disparity stems from the UK's two-tier pension system, a legacy of the major structural overhaul in 2016. The older scheme has a lower weekly starting amount, which means the same percentage increase results in a smaller cash sum.
Who Is Eligible for the £440 Increase?
The £440 annual rise specifically applies to individuals who qualify for the old basic state pension. This typically includes men born before 6 April 1951 and women born before 6 April 1953. These groups reached state pension age before the new system was introduced.
Currently, the full yearly amount for someone on the old basic state pension is £9,175. The £440 increase will lift this to £9,615. Meanwhile, the newer state pension, which starts at a higher baseline of £12,547 per year, will rise to £13,122 with the £575 uplift.
Triple Lock Drives the Rise
The confirmed increases are a direct result of the government's triple lock policy. This rule guarantees that the state pension grows by the highest of three figures each year: average earnings growth, inflation as measured by the Consumer Prices Index (CPI), or 2.5%.
For the upcoming rise, the key metric was wage growth, which was the highest of the three measures. This has triggered what the DWP describes as a "sizable" annual increase for all pensioners, even if the cash amounts differ.
It is important to note that pensioners on the older system often receive additional top-up payments, such as the Pension Credit or Savings Credit, which can help narrow the overall income gap with newer pensioners.
The older basic state pension is being gradually phased out as more people reach retirement age under the new rules. Each year, a smaller proportion of pensioners will be eligible for the lower increase, but the current discrepancy is likely to reignite the ongoing debate about the long-term affordability and fairness of the triple lock system.
