Millions of state pensioners who have grandchildren waking up to 'pay rise'

Millions of grandparents are set to get a pay rise next year. Grandparents are set to benefit from a bumper pay rise next year as state pension rises thanks to Chancellor Rachel Reeves' Budget, which the Labour Party MP delivered last week.

The 4.1 per cent increase means pensioners on the new state pension from the Department for Work and Pensions ( DWP ) will receive a further £473 a year. Older pensioners who retired before April 2016 will get a weekly rise from £169.48 to £176.45, and an annual rise from £8,812.96 to £9,175.61.

Other elements of the old state pension system, mainly "additional" state pensions such as SERPS, will rise in line with the increase in CPI inflation for September which was 1.7% .In April 2025, the earnings link means the state pension will increase by 4.1%, making it worth £230.25 a week for the full, new flat-rate state pension (for those who reached state pension age after April 2016) - a rise of £472 a year.

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It will be £176.45 a week for the full, old basic state pension (for those who reached state pension age before April 2016) - a rise of £363 a year. Depending on their overall income, those above retirement age may also be entitled to pension credit in addition to the basic state pension.

Since April 2024, pension credit tops up weekly income to £218.15 if you are single or £332.95 if you have a partner. From April 2025, pension credit will also increase by 4.1% meaning it will top up weekly income to £227.10 if you are single - a rise of £465 a year or £346.60 if you have a partner - a rise of £710 a year.

If your income is above the stated limits, you may still be eligible for pension credit if you have a disability or care for someone.