We were recently contacted by a client who was puzzled about why his and his wife’s State Pension had not increased by the expected 4.10% in April. They had received their increase letters in January 2025 and found that the rises applied to their pensions were lower than expected. This is a common question, as many pensioners find that their payments rise by different amounts. Additionally, they asked why one of them qualifies for the Basic State Pension, while the other receives the New State Pension. If you’ve checked your pension statement and found that your increase is lower than expected, here’s why.

Why Does One Person Receive the Basic State Pension and the Other the New State Pension?

The type of State Pension you receive depends on when you reached State Pension age:

• If you reached State Pension age before 6 April 2016, you receive the Basic State Pension.
• If you reached State Pension age on or after 6 April 2016, you receive the New State Pension.

This change was introduced to simplify the pension system and ensure future retirees receive a flat-rate pension (subject to eligibility based on National Insurance contributions).

The Triple Lock and the 2025 State Pension Increase

The State Pension is usually increased according to the triple lock, which ensures that pensions rise by the highest of:

• Inflation (as measured by CPI in the previous September)
• Average earnings growth
• A minimum of 2.5%

For April 2025, the State Pension is increasing by 4.10%, in line with September 2024’s earnings growth figure. However, this does not mean every part of your pension will increase by this amount.

Breakdown of State Pension Increases

Different elements of the UK State Pension are subject to different uprating rules, leading to discrepancies in how much individual pensioners receive.

New State Pension

If you reached State Pension age after April 2016 and receive the full New State Pension, your weekly payment is increasing from £221.20 to £230.25, an increase of 4.10%.

Basic State Pension

If you reached State Pension age before April 2016, you are on the old Basic State Pension. The full rate is increasing from £169.50 to £176.45, also a 4.10% increase.

Protected Payment

Some people receiving the New State Pension may have a Protected Payment, which accounts for pension entitlements carried over from the old system. This component is only increased by 1.7%, in line with CPI inflation.

Pre-97 and Post-97 Additional State Pension (SERPS/S2P)

If you accrued Additional State Pension through the State Earnings-Related Pension Scheme (SERPS) or State Second Pension (S2P), these elements are increased by 1.7%, in line with CPI inflation rather than the full 4.10%.

Graduated Retirement Benefit

For those who contributed to the Graduated Retirement Benefit scheme (before 1975), this element also only rises by 1.7%.

Why Doesn’t the Whole Pension Increase at the Same Rate?

These different increases are due to the government’s uprating policies. The main New State Pension and Basic State Pension benefit from the triple lock. However, other elements, such as Additional State Pensions and Graduated Retirement Benefits, are only increased by CPI inflation.

What Can You Do?

If you’re concerned about how much your State Pension has increased, check your State Pension forecast on the Government’s website:

• Check your State Pension forecast
• Contact the Pension Service

If you think there’s an error, you can contact the Pension Service for clarification.

Final Thoughts

While the 4.10% increase applies to the core State Pension, additional elements may rise at lower rates, which explains why your total payment might not have increased as much as expected. Understanding these rules can help you plan your finances more effectively and avoid any surprises when your pension payment arrives in April.