Secretary of State for Work and Pensions (): I have concluded my statutory annual review
of State Pension and benefit rates under the Social Security
Administration Act 1992. 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 Universal Credit Act 2025 removed the standard allowance and
health elements of Universal Credit, as well as their Employment
and Support Allowance equivalents, from my review. The Act
delivered important changes to rebalance Universal Credit to
tackle perverse incentives in the system. The UC Standard
Allowance for a single person aged 25 or over will increase by
around £219 a year. That's over £45 more than if up-rated by
inflation alone. For couples, where one member is aged 25 or
over, it will increase by around an additional £344 a year.
That's approximately £71 more than if up-rated by inflation
alone. These changes narrow the gap between the standard rate of
Universal Credit and the health-related element, helping to
strengthen incentives to move into and progress in work.
The majority of these increases will apply across Great Britain,
except for Personal Independence Payment and other benefits to
help with additional needs arising from disability, and the rate
of Carer's Allowance, which will only apply to England and Wales.
In Scotland, these are devolved matters.
All social security, including State Pensions, is a transferred
matter in Northern Ireland.
While not part of my formal up-rating review, I can confirm that
Local Housing Allowance rates and the benefit cap will be
maintained at their current levels and not increased for 2027-28.
I will place the full list of proposed State Pension and benefit
rates for 2027-28 in the Libraries of both Houses and on GOV.UK
in due course.
