How much is the State Pension increase in April 2024?

29 March 2024

Written by Retirement Line Updated: 9th April 2024

Chancellor Jeremy Hunt confirmed in the Spring Budget what the UK State Pension increase in April 2024 will be. Here’s everything you need to know about the pending rise, plus other changes coming into effect in April that could impact your later life finances.

The UK State Pension increases each year in April.  The ‘triple lock’ commits to increase it in line with the highest of the following three: average earnings growth, annual inflation up to September, or 2.5%. 

The figures for September 2023 show that average wages rose by 8.5%, which is higher than 2.5% and the inflation rate of 6.7%. So, thanks to the triple lock, pensioners will enjoy an 8.5% boost thanks to the 2024 pension increase from 6 April.

Figures for State Pension increase 2023 to 2024

The percentage boosts certainly sound promising, but what is the pension increase for 2024 in terms of cash in the pocket? From 6 April the State Pension will be worth:

• £221.20 a week, or £11,502 a year for the full, new State Pension (for those who reached State Pension age after April 2016).

• £169.50 a week, or £8,814 a year for the full, basic State Pension (for those who reached State Pension age before April 2016)

If you don’t have the full 35 years on your national insurance (NI) record made up of either   NI contributions or credits, then you won’t receive the full amount of new State Pension above. Read “A guide to how the State Pension works” to understand how your State Pension entitlement is decided.

Alternatively, you might receive even more than the above amounts if you choose to defer your State Pension income after reaching State Pension age. 

Other changes to later life finances from 6 April

In addition to the State Pension increase 2024/25, there are some other policy changes coming in from 6 April that will affect those in or approaching retirement:

• For those still in work, there will be a cut in the rate of Class 1 National Insurance (NI) from 10% to 8% for people paid between £12,571 to £50,270 a year. 

• The Pension Credit standard minimum guarantee will rise to £218.15 per week for single people and £332.95 per week for couples.

• A range of State Benefits will rise by 6.7%l. These include Universal Credit, Attendance Allowance, Carers Allowance and Disability Living Allowance. Universal Credit standard allowance, for example, will increase to £393.45 per month for single people and £617.60 for couples.

• Council tax will rise for most people outside of Scotland, where it is frozen until 2025. Higher council tax bills can have a significant impact on many pensioners living on the lowest incomes.

• The cost-of-living payments were a lifeline to pensioners struggling with higher prices and bills in recent years. Unfortunately, no plans for any further cost-of-living payments were announced in the Spring Budget, presumably in response to the cost of domestic gas and electricity falling from April.

• The 8.3% of over-65s who smoke will see duty on cigarettes rise by around 12%, bringing the cost of an average packet of 20 cigarettes to £14.39.