The Department for Work and Pensions (DWP) has just confirmed a welcome increase to the State Pension, starting June 20, 2025. This rise, alongside some tweaks to how pensions are paid, is great news for millions of UK pensioners struggling with rising costs. The changes aim to keep pensions in line with wage growth and make life a bit easier for retirees. Here’s everything you need to know about the new rates and what’s changing.
A Bigger Pension for 2025
From June 20, 2025, the weekly State Pension will jump to £230.25, up from £221.20. This 4.1% increase comes from the government’s triple lock rule, which ensures pensions rise by the highest of inflation, average earnings growth, or 2.5%. This year, wage growth of 4.1% set the rate. For those getting the full new State Pension, this means an extra £472 a year, which can help with bills, groceries, or other essentials. The DWP says about 12 million pensioners will see this boost.
Not everyone gets the full amount, though—it depends on your National Insurance contributions. If you’ve got gaps in your record, you might be able to pay voluntary contributions to increase your pension. The DWP will send you a letter four months before you reach State Pension age (currently 66) to explain your options. For those on the full pension, the yearly total will now be around £11,975, giving a bit more breathing room.
New Payment Dates for Smoother Delivery
The DWP is also rolling out a new payment schedule starting June 20, 2025, to make sure pensions arrive on time. Payments will still come every four weeks, but dates are being adjusted to avoid bank holidays. For example, if a payment is due on a bank holiday like Monday, May 5, 2025, it’ll be paid early on Friday, May 2. In July 2025, with no bank holidays, payments will stick to their usual dates.
Here’s a quick look at the payment schedule for July 2025:
| Benefit | Payment Frequency | July 2025 Payment Dates |
|---|---|---|
| State Pension | Every 4 weeks | No changes, usual dates |
| Pension Credit | Weekly or every 4 weeks | No changes, usual dates |
| Attendance Allowance | Every 4 weeks | No changes, usual dates |
You can check your exact payment dates on the DWP website or by calling their helpline. Payments go straight to your bank account, so make sure your details are up to date. You’ll need your National Insurance number and ID when contacting the DWP.
Pension Credit Gets a Helping Hand
The DWP is boosting Pension Credit by £900 in 2025, paid in three £300 instalments in July, October, and December. This is for low-income pensioners aged 66 or over, living in the UK full-time, and already claiming or approved for Pension Credit. If you think you qualify but aren’t claiming, apply before August 2025 to get all three payments. You can apply online or by phone, and the process is straightforward.
Pension Credit also unlocks extra support, like council tax discounts or a free TV licence for those over 75. Combined with the State Pension, it could bring some pensioners’ weekly income to £549 by May 2025. This is a big help, especially with energy prices still a worry for many retirees.
Extra Cost of Living Support
On top of the pension increase, the DWP is offering a £450 cost of living payment in June 2025 for those on benefits like Universal Credit or Pension Credit. This one-off payment will show up in your bank account with a reference like “DWP COL” next to your National Insurance number. It’s only for people with active claims in spring 2025. Other support, like higher Local Housing Allowance or free school meals in some areas, is also available—check your local council’s website for details.
What Pensioners Should Do
You don’t need to do anything to get the new pension rate—it’ll start automatically on June 20. But checking your National Insurance record could help you get the full amount. If you’re on a low income, applying for Pension Credit is a smart move to boost your income and unlock extra benefits. The DWP website has tools to help, or you can call their helpline for advice. With these changes, 2025 could bring a bit more financial security for pensioners across the UK.