DWP announces new £250.70 state pension update in Wednesday document

DWP announces new £250.70 state pension update in Wednesday document The Department for Work and Pensions has confirmed the exact rates of the full new state pension for the 2027-28 tax year taking the annual payment above the frozen £12,570 personal tax allowance The Department for Work and Pensions (DWP) has today revealed the exact figures showing how much state pensions will increase next year. In its annual review, the government confirmed that the state pension would rise by 3.9%, taking effect on April 12 next year. This means those on the full new state pension will receive £250.70 per week, amounting to £13,036.40 over the course of 12 months. Crucially, this pushes the new full state pension above the £12,570 frozen personal tax allowance. The Government confirmed that pensioners with incomes at or below the value of the full new state pension will not be liable for tax as a result of state pension uprating during this Parliament. With the personal tax allowance remaining frozen at £12,570, some pensioners had been at risk of falling into the tax net – with the annual new state pension set to reach £13,036 next year. The allowance will apply from April 6, 2027 until April 5, 2030 and will be uprated in line with the full new state pension throughout this Parliament, according to Budget documents. The government today made a publication of the full new benefit rates in a document. New State Pension // Rates 2026 to 2027 // Rates 2027 to 2028 Full rate\u0009 // £241.30 // £250.70 Old State Pension // Rates 2026 to 2027 // Rates 2027 to 2028 (£) Category A or B basic pension // £184.90 // £192.10 Category B (lower) basic pension - spouse or civil partner’s insurance // £110.75/ £115.05 Category C or D - non-contributory // £110.75 // £115.05 In a statement to Parliament following the budget, Pat McFadden, Work and Pensions Secretary of State, said: "The new rates will apply in the tax year 2027-28 and will mainly come into effect from 12 April 2027. "I am pleased to announce that the basic and full rate of the new state pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026. "This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. From April, the full annual rate of the new state pension will increase by around £490. The full annual rate of the basic state pension will increase by around £375. "The standard minimum guarantee in pension credit will also increase by 3.9% in line with the increase in average weekly earnings. From April, it will be £247.30 a week for a single pensioner and £377.40 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 3.5%, in line with the increase in the consumer prices index in the year to September 2026. "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 3.5%." The state pension rise is determined by the triple lock guarantee, meaning it climbs annually in line with whichever is greatest — earnings, inflation, or 2.5%. The latest figures used to calculate next year's increase revealed that the earnings measure came out on top at 3.9%. Not all retirees receive the full state pension, with older recipients drawing the basic state pension, currently worth £184.90 per week at the full rate. Those on the full basic state pension are expected to see their yearly income climb to approximately £9,989 from next April. The Government has confirmed plans to overhaul the triple lock from April 2030, so the state pension will increase annually by whichever is highest — 2.5%, inflation, or the amount needed to maintain its value relative to earnings as recorded in April 2029. The shake-up is intended to help finance a National Care Service in England. Read the full breakdown on pensions and other benefits here.