State Pension Increase 2023
Updated: May 20
The state pension increase for 2023 is 10.1%.
What date does the state pension increase?
The state pension increases on the first Monday of the new tax year. For 2023/24, this was April 10th. This means that anybody entitled to the full new state pension will get around £10,600 a year, which is almost £203.85 per week.
The state pension will increase again on April 8th, 2024.
In September 2023, the pension increase for 2024 will be decided. It will be based on the triple lock rule - the highest figure of:
The consumer price index measure of inflation – taken in September of the previous year
Average earnings between May and July of the previous year
2.5%
The reason the increase for 2023 is so high is because inflation in September 2022 was 10.1%
If you’re receiving payments from a private pension with a fixed income per year, you may also get increases in 2023. These are usually linked to inflation but capped at a certain percentage. Common increases are between 2.5% and 5%. These are known as defined benefit pension payments.
Check your national insurance payment record.
If you’re already claiming your state pension and don’t have 35 years of national insurance contributions, you won’t be entitled to the maximum state pension.
But you may be able to top up missing previous years which could increase your pension.
You have until July 31st to top up as far back as 2006. From August 1st, you’ll only be able to claim as far back as 2016/17 tax year.
You can top up your national insurance contributions until the age of 70.
So if you’ve started claiming your state pension, you need to contact the Pension Service on 0800 731 0469 to see if you could get a state pension increase.
About to retire? Make sure you check your State Pension Forecast online. It may offer some options to help you increase your pension if you’re below the maximum amount.
Deferring your state pension can give you greater increases.
If you started taking your pension after April 6th 2016, then you can increase your pension by 1% for every 9 weeks your postpone (defer) taking it. That works out at 5.8% a year. And that increase is guaranteed for the rest of your life.
So, if you’re entitled to £10,600 in 2023, then deferring this for a year would increase it to over £11,214 in 2024, plus any normal increases under the triple lock rule.
But there are some things to consider by postponing a year of state pension payments.
