State pension to rise in 2025

The UK state pension is set to rise by over £400 next year. Today we’ll look at who this is affecting and why it’s happening now. 

Why is it rising?

The state pension is rising as a result of April’s triple lock. A triple lock is a combination of three factors that ensure pensions rise in line to protect the real income of pensioners. You can find out more about that via our blog.

The current pension system has been criticised recently, with many describing it as unsustainable. 

Who is it impacting?

The increase will take the full state pension for men born after 1951 and women born after 1953 to around £12,000 next year, after a £900 increase last year.

A challenging time for many pensioners 

The rise comes at a challenging time for many pensions. Labour Chancellor Rachel Reeves was heavily criticised for means-testing the winter fuel allowance, as campaigners push for more protection for vulnerable pensioners. 

As announced back in July from this year onwards, to be eligible for the winter fuel allowance you must have reached State Pension age and also receive a qualifying means-tested benefit. This will affect the majority of pensioners, with Royal London stating that 1,737,342 of 3,407,567 people receiving the new pension received the full weekly amount last year.

It made the calculations using Department for Work & Pensions data from spring 2023. so the overall increase in their income is likely to be £100 or £200 as a combined result of the allowance cut and state pension rise. 

Closing thoughts 

You can keep up to date with pension news via our blog. Alternatively, if you’re looking for pensions advice yourself then please feel free to get in touch to speak with one of our professional financial advisers.