What the State Pension will be from April 2027
The full new State Pension is expected to rise by 3.9% from £241.30 to £250.70 a week on 6 April 2027, which is £13,036.40 a year, an increase of £9.40 a week or £488.80 a year. The full basic State Pension, for people who reached State Pension age before 6 April 2016, would rise from £184.90 to £192.10 a week, or £9,989.20 a year. The 3.9% figure is the growth in average earnings for May to July 2026 published by the Office for National Statistics in September, and under the triple lock it is used unless September's inflation figure, due in mid-October, turns out higher.
The rise is not final until the government confirms it, which normally happens in the Autumn Budget on 28 October 2026 or the benefits uprating statement that follows. The government has said it will keep the triple lock for the whole of this Parliament, so the only open question is whether the number is 3.9% or something slightly higher.
For the first time the full new State Pension will be above the £12,570 Personal Allowance, which is frozen until April 2031. That is why this year's rise comes with a tax question, which the second half of this guide answers.
How the triple lock sets the figure
Each April the State Pension rises by the highest of three numbers:
| Measure | Figure used for April 2027 | Status |
|---|---|---|
| Average earnings growth (total pay, May to July) | 3.9% | Published by the ONS in September 2026 |
| CPI inflation (September) | Expected below 3.9% | Published mid-October 2026 |
| Floor | 2.5% | Fixed |
For April 2026 the lock produced a 4.8% rise, which took the new State Pension to £241.30. If September's CPI came in above 3.9% the April 2027 rise would be higher, but forecasters do not expect it to. The House of Commons Library explains the uprating process in detail.
Weekly and annual amounts, 2026/27 and 2027/28
| Pension | 2026/27 (now) | 2027/28 (expected) | Increase |
|---|---|---|---|
| Full new State Pension, weekly | £241.30 | £250.70 | £9.40 |
| Full new State Pension, annual | £12,547.60 | £13,036.40 | £488.80 |
| Full basic State Pension, weekly | £184.90 | £192.10 | £7.20 |
| Full basic State Pension, annual | £9,614.80 | £9,989.20 | £374.40 |
Not everyone gets the full amount. The new State Pension needs 35 qualifying years of National Insurance for the full rate and at least 10 for anything, and people who were contracted out before 2016 often get less. Your own figure rises by the same 3.9%, so multiply your current weekly amount by 1.039. Additional State Pension and the protected payment rise with CPI rather than the triple lock.
Will you pay tax on the State Pension from April 2027?
The State Pension has always been taxable income. It is paid without tax deducted, so any tax due is collected from your other income or by a separate assessment. What changes in April 2027 is that the full new State Pension alone, at £13,036.40, exceeds the £12,570 Personal Allowance by £466.40. At the 20% basic rate that is £93.28 of tax a year for someone with no other income at all, a figure Fidelity and other commentators have been highlighting since the earnings data was published.
How that is collected depends on what else you have:
- State Pension only. At Budget 2025 the government promised that people whose only income is the basic or new State Pension will not have to pay small amounts of tax through Simple Assessment from April 2027. The mechanism has not yet been published, so watch the October Budget, but the stated intention is that nobody living on the State Pension alone receives a bill.
- State Pension plus a private or workplace pension. HMRC already collects tax on the State Pension by reducing the tax code on your other pension. From April 2027 the extra £466.40 of State Pension above the allowance simply means your private pension is taxed from its first pound. Every £1 of State Pension increase costs 20p in tax if you are a basic-rate taxpayer, so the £488.80 rise is worth £391.04 after tax.
- State Pension plus rental income or self-employment. The State Pension goes on your Self Assessment return with everything else.
- State Pension plus savings interest. Interest uses the Personal Savings Allowance and the £5,000 starting rate for savings, both of which sit on top of the Personal Allowance. Our savings interest tax guide works through the figures, including the rise in savings tax rates to 22% from the same date.
Worked example: State Pension plus an £8,000 private pension
Margaret gets the full new State Pension and £8,000 a year from a workplace pension. In 2026/27 her taxable income is £20,547.60. After the £12,570 allowance, £7,977.60 is taxed at 20%, so she pays £1,595.52. In 2027/28 her State Pension rises to £13,036.40, her income is £21,036.40 and the tax is £1,693.28. Her tax bill rises by £97.76, which is 20% of the £488.80 increase. HMRC will collect the extra by lowering the tax code on her workplace pension, so her monthly private pension payment falls by about £8 while her State Pension rises by about £41 a month. She is still £391 a year better off.
Worked example: State Pension only
George has the full new State Pension and nothing else. In 2026/27 his £12,547.60 is under the allowance and no tax is due. In 2027/28 the arithmetic produces £93.28 of tax, but under the government's commitment he should not be sent a Simple Assessment for it. If a demand does arrive, it can be paid online, by bank transfer or by cheque, and there is no need to register for Self Assessment.
Pension Credit rises too
The Pension Credit guarantee is uprated by earnings growth as well, so the £238 a week single and £363.25 couple figures for 2026/27 should rise by about 3.9% to roughly £247.30 and £377.40 from April 2027, subject to confirmation. Anyone whose income is close to those levels should check again in April, because a small Pension Credit award unlocks the Warm Home Discount, a free TV licence at 75, help with NHS costs and protection from the £35,000 Winter Fuel Payment recovery. Our Pension Credit guide and the benefits calculator cover the rules, and the Winter Fuel Payment 2026/27 guide and benefit page explain this winter's £100 to £300 payment.
What else changes for pensioners in April 2027
- Savings interest is taxed at 22%, 42% and 47% instead of 20%, 40% and 45% from 6 April 2027. The Personal Savings Allowance and the starting rate for savings are unchanged.
- Cash ISAs are limited to £12,000 a year for people under 65 from 6 April 2027. People aged 65 and over keep the full £20,000 cash limit, one of the few tax rules that favours pensioners.
- Unused pensions join the estate for inheritance tax for deaths on or after 6 April 2027. Our pensions and inheritance tax guide and inheritance tax calculator show the effect.
- State Pension age is rising from 66 to 67 for people born on or after 6 April 1960, phased in between April 2026 and April 2028. Someone born between 6 February and 5 March 1961, for example, reaches State Pension age at 66 years and 11 months, and anyone born from 6 March 1961 waits until 67.
What the Budget could change
The triple lock itself is safe for this Parliament. What is being discussed is the Personal Allowance: the Institute for Fiscal Studies estimates that unfreezing thresholds from April 2027 would cost £8.4 billion a year, so the freeze is likely to stay, and each year's State Pension rise will push a larger slice of it into tax. A higher allowance for pensioners only, which existed until 2016, has been suggested by campaigners but not by the Treasury. We will update this guide, the benefits calculator and the take-home pay calculator once the Budget documents are published on 28 October.
Frequently asked questions
How much will the State Pension be in April 2027?
The full new State Pension is expected to be £250.70 a week (£13,036.40 a year) and the full basic State Pension £192.10 a week (£9,989.20 a year), based on 3.9% earnings growth. Confirmation is expected at the Autumn Budget on 28 October 2026.
Will I have to pay tax on my State Pension?
Only if your total taxable income is above £12,570. The full new State Pension alone exceeds that by £466.40 from April 2027, but the government has said people with no other income will not be asked to pay the resulting £93.28 through Simple Assessment.
Is the State Pension paid with tax deducted?
No. It is paid gross. HMRC collects any tax due through the code on a private pension or employment, or by Simple Assessment or Self Assessment.
When exactly does the new rate start?
The new rates apply from 6 April 2027. Because the State Pension is paid in arrears every four weeks, the first payment at the new rate arrives up to four weeks later.
Does the rise apply if I live abroad?
Only in the UK, the EEA, Switzerland and countries with a social security agreement that covers uprating. In Australia, Canada and most other countries the pension is frozen at the rate when you left or first claimed.