The Department for Work and Pensions (DWP) is preparing to send an important letter to every retiree receiving the State Pension, Attendance Allowance, or Pension Credit. This communication is to inform them of upcoming increases to their payments, set to take effect from April 2026.
Significant Boost to Pensioner Incomes
From April 2026, the basic and new State Pension will see a substantial increase of 4.8%. This uplift is part of the government's annual review to ensure benefits keep pace with the cost of living, using the inflation rate to September as the benchmark.
The full new State Pension, for those who reached pension age on or after 6 April 2016, will rise to £241.30 per week, up from £230.25. For those on the basic State Pension, the core amount will increase to £184.90 per week, a rise from £176.45.
Beyond the State Pension: Are You Claiming All You Can?
The DWP's letter campaign highlights a critical issue: many people over pension age do not claim all the financial support they are entitled to. This can be due to a lack of awareness about available benefits, confusion over eligibility rules, or concerns about the claiming process.
If you are over pension age and on a low income, have limited savings, or have a health condition or disability that makes daily life more difficult, you may be eligible for additional support. Key benefits include:
- Pension Credit: A top-up for people on a low income. From April 2026, it will rise to £238 per week for single people (from £227) and £363 for couples (from £346).
- Attendance Allowance (AA): Help for those who have reached State Pension age and need personal care due to illness or disability.
Furthermore, inflation-linked benefits and tax credits administered by the DWP will rise by 3.8%. There will also be specific increases for severely disabled pensioners and an enhanced additional amount for carers.
Why the Letters Matter
This proactive mailing from the DWP serves a dual purpose. Firstly, it provides clear, direct notification of the exact payment increases individuals can expect. Secondly, it acts as a vital prompt for retirees to assess their full entitlement.
The government is legally obligated to review benefit levels annually. With the key inflation measure standing at 3.8%, the confirmed increases aim to protect pensioner incomes against rising prices. The upcoming letters are a crucial step in ensuring every eligible person is informed and can plan their finances with confidence for the new financial year.
