The Department for Work and Pensions (DWP) has shared exciting news for millions of UK pensioners. Starting in 2025, the State Pension will increase, and a new payment schedule will make things easier for retirees. With costs like energy and groceries still a worry, these changes aim to give pensioners more support and clarity. This article explains the updates in simple words, so you can understand what’s coming and how to prepare.
State Pension Gets a Lift
From April 2025, the State Pension will rise by 4.1%, thanks to the government’s triple lock rule. This rule ensures pensions go up by the highest of inflation, wage growth, or 2.5%. This year, wages grew by 4.1%, so that’s the increase pensioners will see. For those on the full new State Pension, payments will jump from £221.20 to £230.25 a week, adding about £470 a year. The basic State Pension will rise from £169.50 to £176.45 a week, giving an extra £360 annually.
- You don’t need to apply—the increase starts automatically in April.
- The amount you get depends on your National Insurance contributions.
- Check your pension forecast online to see your exact amount.
This boost will help pensioners cover everyday costs, but some may need extra benefits like Pension Credit to make ends meet.
New Payment Schedule for 2025
The DWP is introducing a new payment schedule starting June 21, 2025, to ensure payments arrive smoothly, even around bank holidays or weekends. Most pensioners will keep their usual payment cycle—weekly, fortnightly, or monthly—but some dates will shift to avoid delays. For example, payments due on a bank holiday, like August 25, 2025, will arrive on Friday, August 22 instead.
Here’s a look at the draft July 2025 schedule:
| Payment Week | Expected Payment Dates | Notes |
|---|---|---|
| Week 1 | 1–4 July 2025 | Normal schedule |
| Week 2 | 7–11 July 2025 | Normal schedule |
| Week 3 | 14–18 July 2025 | Early payments for weekend dates |
| Week 4 | 21–25 July 2025 | Normal schedule |
| Week 5 | 28–31 July 2025 | End-of-month payments |
Check your exact dates on the DWP website or by calling the helpline. Make sure your bank details are up to date to avoid any hiccups.
Extra Help with Pension Credit
The DWP is also boosting Pension Credit in 2025, offering up to £900 in extra payments for low-income pensioners. These will come in three £300 chunks in July, October, and December. Pension Credit can top up your weekly income to £218.15 for singles or £332.95 for couples, and it opens the door to other perks like a free TV licence for over-75s or cheaper council tax.
- Apply by August 2025 to get all three payments.
- You must be 66 or over and live in the UK full-time.
- Apply online, by phone, or through the DWP helpline.
If your income is low, don’t miss out—check if you qualify for Pension Credit to give your budget a lift.
Cost of Living Support in June
On top of the pension rise and new schedule, the DWP is giving a £450 cost of living payment in June 2025 to people on benefits like Pension Credit or Universal Credit. This one-off payment will land in your bank account during the month, marked with “DWP COL” next to your National Insurance number. You need an active benefit claim in spring 2025 to qualify.
- No need to apply—the payment comes automatically.
- Check your benefit status to ensure you’re eligible.
- Contact the DWP if you don’t see the payment by July.
This extra cash is designed to help with rising costs, especially for energy bills as summer ends.
Stay in the Loop with DWP
To keep up with these changes, sign up for a DWP online account to get instant updates on payments and benefits. If you prefer letters, ensure your address is correct with the DWP. You can also call the pension helpline at 0800 731 0469 for free advice or visit a Citizens Advice centre for help.
- Check your bank account regularly for payment updates.
- Respond to DWP letters or alerts quickly.
- Ask a family member for help with online accounts if needed.
These updates—a pension increase, new payment dates, and extra support—are all about making life easier for pensioners. Check your eligibility, mark your calendar, and enjoy the extra peace of mind in 2025!
