New state pensioners with full National Insurance records will receive up to £574.60 more per year from April 2026, thanks to the Triple Lock increase confirmed by the DWP

New state pensioners are set to receive a financial uplift from April worth as much as £574.60 annually, or £47.91 each month. The state pension is guaranteed to rise every year based on whichever is highest among three measures — inflation, wage growth, or a flat 2.5 percent — and this protection is enshrined in law for both the new post-2016 state pension and the older basic state pension.

The DWP has confirmed that the Triple Lock will deliver a near-£575 yearly increase for new state pensioners from Monday, April 6. This is due to the key average earnings figure being confirmed at 4.8 percent, which surpasses both the inflation rate and the 2.5 percent minimum threshold for increases.

New state pensioners are those who reached state pension age after April 2016. When the new system launched in April 2016, the state pension age stood at 66, meaning today’s new state pensioners are aged up to 76, though some may turn 77 shortly after April 6.

Those on the new post-2016 state pension will receive up to £47.91 extra per month, provided they hold a full National Insurance record, equating to £574.60 more per year than last year.

Those with incomplete records will receive lower overall pension payments, depending on the extent of any shortfall, which the DWP calculates individually when a claimant first reaches state pension age. All state pensioners should by now have received a personal letter outlining their weekly state pension payments for the current tax year. Older state pensioners will see their payments increase from £176.45 to £184.90, while new state pensioners will see theirs rise from the current £230.25 to £241.30 per week, for those with a full National Insurance record, reports the Express.

Significantly, both figures will remain below the £12,570 Personal Allowance threshold for income tax.

There is additionally a separate DWP provision that will enable older state pensioners to enhance their weekly payments, subject to their income and savings.

Pension Credit is a benefit that both older and new state pensioners can utilise to supplement their income. For instance, an older state pensioner who only qualifies for the basic state pension will receive £184.90 per week. Pension Credit can top up this sum to £238 per week, which is only marginally below the new state pension (£241.30). However, any additional income, such as earnings from employment, property income, savings interest or a private pension, is taken into account first, meaning the full amount may not be accessible if income limits are exceeded.

The Chancellor has further announced that, going forward, state pensioners who surpass the £12,570 Personal Tax Allowance will not be liable for tax on their state pension, provided they have no other income. The precise details of how this will operate are yet to be disclosed, though HM Treasury has confirmed that older pensioners receiving AP (additional pension) payments will remain subject to tax on their secondary pension schemes as they currently are.

Martin Lewis has helpful tax guidance for pensioners

Martin Lewis has shared valuable tax guidance that pensioners would do well to take note of. During an episode of his BBC podcast, the consumer champion addressed a broad range of tax-related questions.

The programme explored subjects including income tax changes impacting state pensioners, alongside how inheritance tax and capital gains tax operate. Mr Lewis was accompanied by two tax specialists to help clarify the regulations, including chartered accountant Rebecca Benneyworth.

A listener called Cathy, 80, contacted the show to explain she was finding it difficult to complete her HMRC self-assessment forms – something many people must do annually. The next deadline for submitting your self-assessment tax return for the previous tax year is January 31, 2027 – but Martin advises against waiting until the deadline approaches.

Not submitting your tax return punctually can lead to penalties. The pensioner said she only owed £150 in tax and had attempted to secure assistance from a tax adviser, but many were imposing substantial charges.

Mr Lewis reminded listeners that completing your self-assessment between October and December, well in advance of the annual January deadline, is highly recommended. Ms Benneyworth also detailed some of the support available for elderly taxpayers, reports the Mirror.

She said: “If you are on a low income, there are two tax charities. One I’m thinking of is Tax Help for Older People. They have an army of volunteers – I’ve worked as a volunteer in the past – for elderly people on low incomes.

“They will come round to your house and they will sit with you, and they will sort out your tax.” The tax specialist then pointed the caller towards another charitable organisation that could offer further assistance.

Ms Benneyworth continued: “The other one is Tax Aid. They are more London-based but you can deal with them on the phone or by email. Again, they help people who’ve got low incomes who have got themselves into a mess with their tax affairs for free.

“Lots of tax professionals make donations to those charities at the end of the year because we all think they do an absolutely fabulous job.” The accountant also put forward another route for gaining a better understanding of HMRC regulations.

She went on to say: “I wouldn’t suggest it to everybody but you might get a bit of help on webchat [on the Government website]. HMRC is devoting quite a lot of money and resource to webchat.

“Some of it is the computer says yes or no, but if you are asking questions that they think you need a real life advisor, you may well be able to get put on to an advisor, who might help you.”

Offering his own perspective, Mr Lewis noted that improving services is ultimately in the Government’s interest. He remarked: “This isn’t about a cost [for HMRC]. Ultimately, do it right and you collect more tax revenue, because people are paying the right tax. When you don’t know what to do, it’s not good for society.”

Mr Lewis’ Money Saving Expert website offers guidance regarding the 2027 deadline, stating: “If you’re self-employed or had extra income last year, you may need to file a self-assessment tax return. For the 2025/26 tax year (which ended on 5 April 2026) you have until 31 January 2027 to submit online.”

Ensuring your tax return is filed punctually by January 31 is essential, as missing the cut-off could result in escalating financial penalties. The taxcalc website warns: “If you miss the deadline you’ll be subject to the late filing penalty rules.”

The MSE website further cautions: “Missing the deadline for filing your return means an automatic penalty of £100 – and these penalties increase the longer you leave it.”

New DWP powers to check bank accounts of Universal Credit and Pension Credit claimants will be rolled out this year as part of a major benefit fraud crackdown

The Department for Work and Pensions (DWP) is being granted sweeping new powers to crack down on benefit fraud, including the ability to scrutinise claimants’ bank accounts.

Legislation passed last year introduced a broad range of measures, enabling investigators to request financial information from individuals receiving certain benefits. Officials will contact UK banking institutions, directing them to examine their records for accounts linked to specific benefits, flagging any that may be receiving payments to which claimants are not entitled.

The new laws also grant authorities the power to withdraw funds directly from a person’s bank account should they owe money to the DWP and refuse to repay the debt. Initially, the eligibility checks will be applied to those claiming Universal Credit, Pension Credit, and Employment and Support Allowance.

The legislation indicates that this could be extended to cover additional benefits. The DWP was approached for an update on when these bank checks will come into effect, with officials confirming that they have yet to be implemented, as certain prerequisites must first be met.

As part of the rollout, the DWP will adopt a ‘test and learn approach’ to trial the new powers, which is set to commence this year. In the meantime, the DWP is currently drafting codes of practice governing the use of these new powers, with finalised versions to be presented to Parliament “before any new powers can be used”. The direct deduction powers, which enable investigators to withdraw funds straight from an individual’s bank account, are chiefly targeted at those who have exited the benefits system but still owe outstanding debts.

Previously, the DWP was restricted to recovering money through an individual’s PAYE earnings or via deductions from their benefits, reports Chronicle Live.

Should the Department for Work and Pensions (DWP) decide to utilise this authority, they will contact the individual in question, offering an opportunity to contest the matter. Officials will also need three months’ worth of bank statements to verify that adequate funds are available in the account.

The legislation also provides enhanced powers to fraud investigators when conducting enquiries. Previously, they were restricted to requesting information from a limited list of sources.

They can now contact any third party linked to the individual suspected of fraud, requiring them to supply the necessary information. When the laws were introduced in December 2025, Andrew Western, minister for Transformation, said: “It is right that as fraud against the public sector evolves, the Government has a robust and resolute response.

“The powers granted through the bill will allow us to better identify, prevent and deter fraud and error, and enable the better recovery of debt owed to the taxpayer. A benefits system people can trust is essential for claimants and taxpayers alike – through this bill that’s exactly what we’ll deliver.”

People with a terminal illness can have their PIP claim fast-tracked with special rules that mean no face-to-face assessment and higher daily living payments

Personal Independence Payments (PIP) offer financial assistance to those living with long-term physical or mental health conditions or disabilities who face difficulties with everyday tasks or getting around. Claims are assessed primarily on how a condition impacts an individual’s daily life, rather than their specific diagnosis, unless their doctor has informed them of one particular thing.

Those who have received a terminal diagnosis are subject to different rules when applying for PIP, which can effectively ‘guarantee’ a fast-tracked application and entitle them to the highest rate of the daily living payment, currently set at £110.40. This figure is due to rise to £114.60 from April 6, 2026.

Citizens Advice states: “If you have a terminal illness, you’ll usually get PIP automatically. The DWP will fast-track your application – this means: you won’t have to fill out as many forms, you won’t have to go to a face-to-face assessment, you should get your first payment sooner.

“Someone else can claim on behalf of a person who is terminally ill. For example, because the person doesn’t know that they have a terminal illness. If you do this, let the person know that the claim for PIP is being made, even if they don’t know it is because they’re terminally ill.”

To be eligible for PIP under the special rules for end-of-life cases, applicants must be aged 16 or over at the time of applying, be residing in England or Wales, and have a doctor confirm that they may pass away within 12 months. However, Government guidance notes: “It can be difficult to predict how long someone might live for. If a medical professional has not talked to you about this, you can still ask them to support your claim under the special rules for end of life,” reports the Mirror.

Should you meet these criteria, you will automatically receive the higher daily living element. However, you will only be eligible for the mobility element if your health condition directly causes mobility difficulties.

Citizens Advice adds: “Make sure you tell the DWP if you have problems most of the time when moving around or going out. For example, tell them how far and how fast you can walk before these problems start.”

It advised people with terminal diagnoses inform the DWP if they:

• Can’t walk without pain, breathlessness or help
• Need a wheelchair, walking stick or other mobility aid
• Experience stress and anxiety that makes it difficult to go out

To make a PIP claim under the special rules for end-of-life, you will need to telephone the PIP team and state that you wish to begin a claim under these provisions. The PIP team will then ask a series of questions regarding your condition in order to assess your eligibility.

You will also need to request an SR1 form from your medical team, which they may either hand directly to you or submit to the DWP on your behalf. This can be provided by your GPs, consultants, specialists, hospice doctors or registered nurses, including Macmillan nurses. Individuals with a life-limiting diagnosis may also be eligible to apply under the special rules for Universal Credit and Employment and Support Allowance if they are of working age.

Those above state pension age can access Attendance Allowance, while children under 16 will need to apply for Disability Living Allowance for children.

After submitting your application, Macmillan specialists indicate you should receive your initial payment within a fortnight of applying. You’ll also be able to skip some of the standard PIP eligibility requirements, such as demonstrating daily living or mobility challenges for the previous three months.

New VAT and Insurance Premium Tax rules will increase costs for Motability Scheme applications from 1 July 2026, with changes to mileage allowance and tyre replacement limits

The Motability Scheme is set to undergo significant changes as updated regulations drive up costs from July. The alterations stem from tax adjustments announced in the Labour Government’s Autumn Budget last year, which will have a direct impact on the scheme.

From 1 July 2026, VAT and Insurance Premium Tax (IPT) will apply to leases on the DWP Motability Scheme. Consequently, leasing a vehicle will become considerably more expensive, and the overall cost of delivering the Scheme will rise substantially.

There are several key points to note. The changes apply to new applications submitted on or after Tuesday, July 1 2026. The organisation states: “When considering changes, priority has been given to protecting what matters most to disabled people, reducing the impact of the tax changes as far as possible and providing good value.

“Alongside Motability Operations, we remain dedicated to providing the Motability Scheme now, and for years to come, with a continued strong focus on customer service, affordability and choice.”

VAT

For those who currently hold a lease, Motability officials confirm that nothing will change for the time being, reports Birmingham Live.

Where VAT is applied to a lease, it will not affect the lease payments deducted from your mobility allowance. Rather, VAT will be charged at the standard rate on other lease costs including your Advance Payment, excess mileage fees and early termination charges.

Mileage allowance

Regarding mileage allowance, new leases will feature:

• Cars: 30,000 miles across three years
• Wheelchair Accessible Vehicles: 50,000 miles across five years

Officials report that roughly three-quarters of customers travel within this revised allowance, with a typical annual mileage of around 7,500 miles. Those who exceed this limit will have the option to purchase additional miles, the foundation confirms.

It added: “We recognise that some customers may need to drive more miles for a variety of reasons, and we are currently looking at ways we may be able to mitigate the impact of these changes for customers in some limited exceptional circumstances.”

Tyre replacement

On tyre replacement, from 1 July, a Scheme lease will cover:

• Up to six tyres during a three-year lease, with up to four replacements available for accidental damage
• Up to 10 tyres during a five-year lease, with up to six replacements available for accidental damage

Most customers require two tyre replacements over the course of a three-year lease, and these updated limits have been set to reflect what the vast majority of drivers need through standard use, the foundation states. With regard to EU breakdown cover, drivers will still be permitted to take their vehicle abroad, but must request a VE103 form from the RAC and pay an administration fee.

EU breakdown cover

In the previous year, fewer than one per cent of customers made use of EU breakdown cover. For those already holding a lease, Motability representatives confirm that nothing will change during your current agreement at this stage.

They stress that these modifications apply solely to new applications made from 1 July 2026 onwards.

Personal Independence Payment rates are rising from April 6, 2026, with millions of claimants set to receive more money for daily living and mobility support

Millions of claimants are set to see their Personal Independence Payment (PIP) rates increase next week. Here is a breakdown of how much more you could receive.

PIP is the principal disability benefit for those under state pension age, awarded to individuals who require assistance with day-to-day tasks as a result of an illness, disability or mental health condition.

Rather than qualifying through a specific list of conditions, eligibility is determined by how your condition impacts your daily life. PIP is administered by the Department for Work and Pensions (DWP).

The benefit comprises two components, both of which will rise by 3.8% from April 6, 2026. The daily living element currently stands at £73.90 per week for the standard rate and £110.40 per week for the enhanced rate. These figures will increase to £76.70 per week and £114.60 per week respectively, reports the Mirror.

The mobility component currently sits at £29.20 per week for the standard rate and £77.05 per week for the enhanced rate. These will rise to £30.30 per week and £80 per week. Claimants may be entitled to both the daily living and mobility components simultaneously.

PIP is typically awarded for a period of between nine months and 10 years, after which the claim is subject to review. Your award may be adjusted should your condition improve or deteriorate.

The DWP will ordinarily approve a PIP claim without a formal assessment for those who are terminally ill, with the award lasting three years before review. PIP is available to individuals aged 16 and over who are below state pension age.

If you’re receiving PIP and reach state pension age, your claim will typically carry on. You may be eligible to submit a fresh claim at state pension age if you qualified for PIP within the previous 12 months.

HMRC has outlined key tax rules for state pension payments after a query about deductions

HMRC has clarified the tax rules surrounding state pension payments, following an enquiry about deductions applied to those payments.

A state pensioner contacted the tax authority through social media with a question, asking: “Where can I find a monthly statement of my state pension showing the payment and deductions?” With upcoming changes on the horizon, now is an opportune moment to review your state pension arrangements.

The state pension is set to rise by 4.8 per cent from April, boosting the full new state pension from £230.25 per week to £241.30 per week. In response to the query, HMRC outlined the key rules to bear in mind, telling the taxpayer: “State pension is paid by the Department for Work and Pensions (DWP) and no tax is deducted at source.

“Your pension payments do appear only on your bank statements – DWP pays the same amount every four weeks.”

This means those receiving the full new state pension will receive £965.20 each payment period under the new rates, reports the Mirror. Those on the full basic state pension will receive £184.90 per week, or £739.60 every four-week payment period, with payments typically issued in arrears.

The day your state pension is paid depends on the final two digits of your National Insurance (NI) number.

Those preparing for retirement should also take note of another significant change coming into effect from April 2026, when the state pension age will begin rising from 66, gradually increasing to reach 67 between April 2026 and April 2028.

Laws have also been passed to implement a further increase to 68, set to take place between 2044 and 2046. You can check your projected state pension entitlement by using the forecast tool available on the Government website.

The State Pension age is set to start rising from 66 to 67 this month, with the increase due to be completed for all men and women across the UK by 2028

The State Pension age is set to begin increasing from 66 to 67 this month, with the transition due to be finalised for all men and women throughout the UK by 2028. The scheduled adjustment to the official retirement age has been enshrined in legislation since 2014, with a subsequent rise from 67 to 68 expected to take effect during the mid-2040s.

The Pensions Act 2014 brought forward the State Pension age increase from 66 to 67 by eight years. The UK Government also modified how the rise in State Pension age is phased, meaning rather than reaching State Pension age on a particular date, individuals born between March 6, 1961 and April 5, 1977 will become eligible for the New State Pension on their 67th birthday.

It’s crucial to be mindful of these alterations now, particularly if you have a retirement strategy in place. Everyone impacted by modifications to their State Pension age will receive correspondence from the Department for Work and Pensions (DWP) well beforehand. Under the Pensions Act 2007 the State Pension age for men and women will rise from 67 to 68 between 2044 and 2046.

The Pensions Act 2014 provides for a regular review of the State Pension age, at least once every five years. The review will be based around the idea people should be able to spend a certain proportion of their adult life drawing a State Pension. The UK Government has recently established a new Pension Commission to examine ways of increasing pension saving, with its conclusions set to be released in 2027. Key areas under consideration will encompass auto-enrolment saving rates, improving savings amongst groups such as the self-employed, and a review of the State Pension age, reports the Daily Record.

Dr Suzy Morrissey will report on factors the UK Government should consider relating to State Pension age and the Government Actuary’s Department will prepare a report on the proportion of adult life in retirement. The State Pension age review will factor in life expectancy alongside a variety of other relevant considerations when determining the appropriate State Pension age.

Once the review has concluded, the UK Government may opt to put forward amendments to the State Pension age. Nevertheless, any such proposals would need to pass through Parliament before being enshrined in law.

Your State Pension age is the earliest point at which you can begin claiming your State Pension, and may differ from the age at which you can access a workplace or personal pension. Anyone, regardless of age, can utilise the online tool at GOV.UK to check their State Pension age, which can prove invaluable when planning for retirement.

Pensioners with severe disabilities claiming Pension Credit will receive an extra £86.05 per week from the DWP from April 6

State pensioners living with a severe disability could receive an additional £86.05 each week from April through a single application to the Department for Work and Pensions (DWP).

Those on a low income can access weekly payments to assist with living expenses by applying for Pension Credit, but where an individual has a severe disability, the benefit can be enhanced with supplementary amounts. The standard minimum guarantee for Pension Credit is increasing by 4.8 percent from April 6, which will see the single weekly amount rise from £227.10 to £238, while the joint weekly amount is going up from £346.60 to £363.25. However, the DWP will provide additional funds on top of the standard Pension Credit amount to support those with disabilities, and this level is also set to increase next month.

The DWP provides a supplementary sum for pensioners with severe disabilities, and this amount is growing by 3.8 percent from April 6, raising weekly payments from £82.90 to £86.05 – a rise of £3.15 each week, reports the Express.

The £86.05 weekly amount is for individual pensioners or couples where one partner qualifies. Across a full year, this equates to £4,474.60 in extra payments from the DWP, in addition to Pension Credit. In November last year, Baroness Sherlock, Minister of State (Minister of Lords), confirmed a 3.8% percent increase to the Pension Credit additional amount for severe disabilities. She stated: “The Standard Minimum Guarantee in Pension Credit will increase by 4.8 percent in line with the increase in average earnings. From April, it will be £238.00 a week for a single pensioner and £363.25 a week for a couple, ensuring the incomes of the poorest pensioners are protected.

“Other State Pension and benefit rates covered by my statutory review will be increased by 3.8 percent, in line with the increase in the consumer prices index in the year to September 2025.

This includes most working-age benefits and other benefits for people below State Pension age; benefits to help with additional needs arising from disability; Statutory Payments including Statutory Sick Pay and Statutory Maternity Pay; and Additional State Pension. The Pension Credit Savings Credit maximum amount will also increase by 3.8 percent.”

According to the DWP, pensioners could receive up to an extra £86.05 per week if they qualify for any of the following benefits:

• Attendance Allowance
• the middle or highest rate from the care component of Disability Living Allowance (DLA)
• The daily living component of Personal Independence Payment (PIP)
• Armed Forces Independence Payment
• The daily living component of Adult Disability Payment
• Pension Age Disability Payment
• the middle or highest rate of the care component of Scottish Adult Disability Living Allowance

Not only can pensioners receive this additional amount if they have a disability, but Pension Credit also provides access to a range of other financial support.

This includes Housing Benefit, a Winter Fuel Payment worth up to £300, a Council Tax discount, a free TV licence if you’re aged 75 or over, £150 off winter energy bills through the Warm Home Discount Scheme, and help with NHS dental treatment, glasses and transport costs.

To qualify for Pension Credit you must have reached State Pension age and live in England, Scotland or Wales.

You can apply for it up to four months before reaching State Pension age or any time after, but your application can only be backdated by three months. This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.

You can use the government’s online Pension Credit calculator to get an estimate of how much you could get and can contact the Pension Service helpline on 0800 99 1234 to check if you’re eligible for extra amounts.

DWP minister Torsten Bell confirms the triple lock policy will remain in place, delivering significant state pension increases including 4.8% this April

A senior DWP minister has addressed the future of the triple lock policy, which is set to boost payments by 4.8 per cent from April.

The mechanism guarantees the state pension rises each April in line with whichever is highest: inflation, average earnings growth, or 2.5 per cent. DWP minister Torsten Bell recently appeared before the Work and Pensions Committee to discuss various matters concerning retirement and pension provision.

Among the questions posed was whether he believes the Government should maintain the triple lock. The policy has delivered substantial increases in payments in recent years, including a record 10.1 per cent rise in April 2023, driven by soaring inflation the previous year.

Pensioners subsequently benefited from an 8.5 per cent uplift the following year, matching the growth in earnings. The escalating cost of the state pension prompts questions about how long the triple lock will remain viable and whether ministers will need to adopt a framework with more modest increases.

Mr Bell responded: “We are going to be keeping the triple lock, yes, through this Parliament.” When pressed about the longer term and whether the policy would require modification, he simply stated: “A manifesto is a manifesto,” reports the Express.

Labour committed during its General Election campaign to preserving the triple lock throughout this Parliament. This will raise payments by 4.8 per cent this April, increasing the full new state pension from £230.25 a week to £241.30 a week, or £12,548 annually. The full basic state pension will rise from £176.45 a week to £184.85 a week, or £9,612 annually. Mr Bell also told the committee: “The Government’s revealed objective is that we want to see a slightly higher level of the state pension relative to earnings, which is being delivered by the maintenance of the triple lock over the course of this Parliament.

“That is the £30 billion increase in state pension expenditure over the course of this Parliament.” Andrew Prosser, head of Investments at investment platform InvestEngine, discussed how the triple lock could become too expensive for the Government.

He said: “The triple lock may become unaffordable if pension payouts rise faster than Government revenue, particularly as the population ages and life expectancy increases. Analysts suggest this could become a significant strain over the next decade, forcing policymakers to review or amend the system to balance cost and fairness.”

He encouraged people to check whether they have any gaps in their National Insurance (NI) records that they can voluntarily fill, which could boost their state pension payments. You generally need 35 years of NI contributions to receive the full new state pension and 30 years of contributions to receive the full basic state pension.