Thousands of pensioners to miss out on £500 pension increase next year – are you on the list?

Key points

• Graduated Retirement Benefit is a top-up that is based on extra National Insurance contributions that employees paid between April 1961…
• Those who receive the old state pension could see their payments rise from £9,615 to £10,010 a year, an increase…
• Yesterday’s figures from the Office for National Statistics showed that total pay grew by 4.1% between April and June 2025…
• The old state pension is paid to people who reached the state pension age before April 6, 2016 and is…

THOUSANDS of pensioners are set to miss out on a £500 state pension increase next year at a time when the cost of living remains high.

Under the triple lock, the state pension rises each year by September’s inflation rate, 2.5% or the average earnings growth between May and July – whichever is highest.

Yesterday’s figures from the Office for National Statistics showed that total pay grew by 4.1% between April and June 2025 and the same period this year.

Unless inflation rises sharply in the next three months, it’s likely that average earnings expansion will be used to determine how much the state pension will rise in April.

If next month’s figures are the same as yesterday’s, then the new state pension will increase by £500 a year, to £13,048.

Meanwhile, those who receive the old state pension could see their payments rise from £9,615 to £10,010 a year, an increase of just under £400.

But thousands will miss out on the increase due to sneaky rules and loopholes.

Former pension minister Sir Steve Webb explains: “The triple lock pledge applies only to the headline rate of the new state pension and the old basic pension.

“Your overall increase will depend on how much of your pension comes from the element that is covered by the triple lock promise.”

Read on to find out if you will be hit.

People on the old state pension

The old state pension is paid to people who reached the state pension age before April 6, 2016 and is at present worth £184.90 a week.

On top they may also receive further state pension. It is based on earnings and National Insurance contributions.

Graduated Retirement Benefit is a top-up that is based on extra National Insurance contributions that employees paid between April 1961 and 1975.

Meanwhile, SERPs was a similar scheme that ran from April 1978 to April 2002.

The additional state pension increases each year in line with inflation in the year to the previous September.

Inflation is currently at 2.9% and even if it inches up it’s unlikely to reach 4.1% by September.

Consequently, these pensioners are likely to see the payments rise at a much lower rate than those whose payments rise under the triple lock.

Frozen pension perks

If you’re on the old state pension then you are also entitled to an extra 25p a week of state pension once you reach the age of 80.

But this princely sum has not increased since it was introduced in 1971, so it won’t benefit from the triple lock.

That means you’ll still get a measly £13 extra a year.

Meanwhile, the Christmas Bonus has been frozen at £10, the same rate as when it was introduced in 1972.

The cash is paid automatically to people who receive the state pension in the first full week of December.

If it has increased in line with inflation it would be worth £119 today, according to Which?.

Retirees who have moved abroad

While it can be tempting to dream about moving abroad in your golden years, doing so could cost you thousands of pounds.

That’s because some countries will freeze your state pension at the rate you received when you moved abroad.

Most European countries and nations including the US and Jamaica have agreements where you’ll still receive increases to the state pension.

But Australia, Canada and New Zealand are among the nations where you won’t benefit from state pension increases.

People who deferred claiming the state pension

Thousands of people delay the date at which they claim their state pension so as to boost the amount they will receive.

If you reach the state pension on or after April 6, 2016 and defer claiming your pension for a year then your payments will be boosted by about 5.8%.

But the triple lock doesn’t apply to any money you secure by deciding to delay the date you claim your state pension.

Instead, the money you secure from deferring increases by CPI each year. It is expected to be a much lower rate than the triple lock this year.