EXCLUSIVE: A cost top-up that is solely given to sure pensioners will not be growing from April.
The 25p ‘addition at age 80’ cost is staying frozen at its present fee (Picture: Getty)
A State Pension cost given to pensioners aged over 80 who retired earlier than 2016 is not going to be going up from April.
The State Pension will increase at first of every new tax 12 months, on April 6, according to the triple lock. The brand new charges are decided by whichever is the best out of the patron value index (CPI) measure of inflation (measured for September of the earlier 12 months), common wage progress between Might and July of the earlier 12 months, or 2.5%. As common wage progress was the best out of those components at 4.8%, the State Pension will rise by this quantity from April 6.
However one pension cost that received’t be rising from April is a little-known 25p further cost top-up that’s solely given to these aged 80 and over, who retired earlier than 2016.
The 25p ‘addition at age 80’ cost for pensioners on the previous primary State Pension is included within the Division for Work and Pensions (DWP) advantages checklist for April 2026 onwards, however it’s staying frozen at its present fee.
Very similar to the controversial £10 Christmas bonus, the 25p cost has by no means been adjusted for inflation because it was first launched in 1971. On the time, pensions had been £6 per week, so 25p represented a 4% increase.
The 25p per week cost was launched in recognition of “the particular claims of very aged individuals who on the entire need assistance relatively greater than others”, and it’s nonetheless given to some pensioners over the age of 80 at the moment – at precisely the identical fee because it was set at in 1971.
The DWP has confirmed it received’t be elevating the 25p age addition payout from April, for the fifty fifth 12 months in a row, and has as an alternative opted to extend different components of help for pensioners.
Explaining the reasoning for preserving the 25p frozen, the DWP stated any enhance can be paid as State Pension and, as such, can be classed as taxable revenue, and this might have an effect on different help pensioners can obtain consequently.
A DWP spokesman instructed The Categorical: “Supporting pensioners is a prime precedence, and our dedication to the Triple Lock means thousands and thousands of older individuals will see their State Pension rise by as much as £2,100.
“Due to our largest ever Pension Credit score take-up marketing campaign, we now have seen a further 33,500 Pension Credit score awards in 2025, value on common £86 per week, for many who want additional help.”
The DWP added: “Successive Governments have determined to not enhance the 25p per week Age Addition cost since its introduction, as an alternative opting to extend the generosity of different components of help for pensioners.
“Any enhance can be paid as State Pension and classed as taxable revenue which might have an effect on the quantity of help individuals obtain via different advantages.”
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The complete new State Pension, which is out there to those that reached State Pension age after 2016, doesn’t embrace the 25p age addition, however those that already retired earlier than the pension changeover are nonetheless eligible to obtain their quarter of a pound.
A Analysis Briefing issued by Parliament in 2013 explains: “The addition has by no means been elevated. It was particularly excluded from the statutory index linking provisions of the Social Safety Act 1975 (now changed by part 150 of the Social Safety Contributions and Advantages Act 1992). The Labour Authorities did float the thought of elevating the age addition of their dialogue doc, ‘A Happier Previous Age’, in 1978.
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“In Might 2012, there have been some 3.2 million pensioners aged 80 and over. This could put the annual value of the 25 pence age addition at some £41 million. If the 25 pence age addition had been elevated by the Retail Costs Index (RPI) since its introduction in 1971, it might now be round £3.20 per week. The annual further value of accelerating it to that quantity can be round £500 million.
“Governments of each events have typically resisted options that the age addition needs to be elevated, both arguing that higher precedence needs to be given to sustaining or growing the essential fee of profit, or selecting to focus on further assets on older pensioners by different means, for instance, via means-tested advantages or lump sum funds, such because the Winter Gas Fee.”
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