State Pension and Benefit Rates 2027-28: Statutory Review

Pat McFadden Excerpts

Wednesday 28th October 2026 Written Statements

[The Secretary of State for Work and Pensions (Pat McFadden)]

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 is over £45 more than if uprated by inflation alone. For couples, where one member is aged 25 or over, it will increase by around an additional £344 a year. That is approximately £71 more than if uprated 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 uprating 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 Library of each House and on www.gov.uk in due course.

[HCWS427]