Older state pensioners across the UK will get up to £2,932 less in State Pension payments per year in 2026 compared to younger retirees, thanks to the triple lock.

The Government increases the State Pension rates at the start of every new tax year in April and the amount it goes up by is determined by one of three factors – known as the ‘triple lock’. These are the consumer price index (CPI) measure of inflation (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%. Whichever is the highest out of these three will determine how much the State Pension is increased in the new tax year.

MPs approved a pensions motion on Tuesday this week (February 10)that will see State Pension rates rise by 4.8% in the new tax year, confirming the government’s commitment to the triple lock. The 4.8% rise is in line with the annual increase in the average weekly earnings index for May to July 2025, and will give some pensioners hundreds of pounds extra per year.

But as the UK’s State Pension system is split into two different schemes – basic and new – not all pensioners will be paid at the same rate.

The government has confirmed that the new State Pension will rise from its current weekly rate of £230.25 to £241.30 from April 6 – an increase of £11.05 per week. As such, those getting the full amount will see their annual payments rise from £11.973 to £12,547.60, giving pensioners an extra £575 per year in the new tax year.

As for older retirees on the basic State Pension, rates are due to rise from £176.45 per week to £184.90 – a weekly increase of £8.45. Those who get the full amount will see their annual payments rise from £9,175.92 to £9,614.80, giving older pensioners up to £439.40 extra per year under the new rates.

While older pensioners will be up to £439.40 better off, those claiming the basic State Pension will still get a whopping £2,932.80 less than younger retirees.

Men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension, but anyone born after these dates can get the new State Pension instead, which is paid at a higher rate.

Work and Pensions minister Sir Stephen Timms told the Commons this week: “Changes will mainly come into effect from 6 April this year and apply for the tax year 2026-27. 

“The order maintains the triple lock – which benefits pensioners in receipt of both the basic and new State Pensions – raises the level of the safety net in pension credit beyond the increase in prices, increases the rates of benefit for those in the labour market, and increases the rates of carers benefits and benefits to help with additional costs arising from disability or health impairment.”

*** Ensure our latest personal finance headlines always appear at the top of your Google Search by making us a Preferred Source. Click here to activate or add us as Preferred Source in your Google search settings. ***

According to UK Parliament, an estimated 8.57 million pensioners were claiming the basic State Pension in the 2024/25 tax year, while only 4.38 million were new State Pension claimants.

As the vast majority of pensioners get the basic State Pension, it means around 8.57 million are set to miss out on up to £2,932.80 annually when the new rates take effect from April.

But age isn’t the only factor in determining which State Pension you get, with everyone who is eligible for the basic State Pension having already reached State Pension age, how much money you get also depends on your National Insurance record, so those who don’t have enough qualifying years will be on course to receive even less in the new tax year.