DWP State Pension update – why you could still be waiting for key letter (2025)

The Department for Work and Pensions (DWP) has been issuing letters to all State Pension recipients in Great Britain, which outline the new payment rates for 2025/26

The yearly hike in State Pensions and benefits, overseen by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC), kicked in on April 7. Every year, the government departments post out letters to all claimants, giving them the lowdown on their new payment rates.

But a fair few might still be twiddling their thumbs waiting for their State Pension uprating letter from the DWP, sparking worries about missing out on the boosted rates. It's key to remember that this letter is just for your records; it doesn't affect payments as the uprating is automatically applied.

While the DWP is still busy posting out letters, it's worth bearing in mind that there are currently 13 million people of State Pension age across Great Britain, with 11 million set to receive the letter.

If you're still letter-less, keep calm and carry on - it should pop through your letterbox before the month is out. If it doesn't, it might be worth double-checking that the DWP has your up-to-date contact details, especially if you've moved house since the last uprating notice was sent out in 2024.

For those pocketing the State Pension, you can give the Pension Service a bell on 0800 731 0469. The phone lines are open from 8am to 6pm Monday to Friday, but they're shut on Good Friday and Easter Monday, according to the Daily Record and Leicestershire Live.

State Pension payment rates 2025/26

Starting from April 7, 2025, State Pension payouts are set for a boost with a tasty 4.1% increase on the cards for both New and Basic State Pensions. And for those who’ve put off claiming – there’s some extra dosh too, though at a more modest raise of 1.7%.

Full New State Pension

• Weekly payment: £230.25 (from £221.20)
• Four-weekly payment: £921 (from £884.80)
• Annual amount: £11,973 (from £11,502)

Full Basic State Pension

• Weekly payment: £176.45 (from £169.50)
• Four-weekly payment: £705.80 (from £678)
• Annual amount: £9,175 (from £8,814)

The Department for Work and Pensions has started sending out letters to break down the new pension rates and are bigging up the often overlooked Pension Credit, which could plump up annual incomes by a sweet £4,300 during the financial year 2025/26.

It's making sure pensioners one knows about their right to this means-tested benefit through their yearly State Pension refresh.

Pensions Minister Torsten Bell said: "As part of the annual State Pension uprating exercise, around 11 million pensioners will receive a leaflet promoting Pension Credit along with their State Pension uprating letter."

The DWP is urging all pensioners, whether single or married, to grab all the support on offer in 2025 to beef up their bank balance in the face of climbing living costs.

Owing to a switch-up in who’s eligible for the annual Winter Fuel Payment, it was only those reeling in specific benefits, like Pension Credit, who received the 2024/25 payout.

Pension Credit, the most overlooked benefit in the UK, is crafted to offer extra financial aid for older folks on a low income, be they single or in a couple.

A common misconception among the elderly is that having a nest egg or owning their own home rules them out from this means-tested benefit. But Pension Credit can also lend a hand with housing costs, heating bills and Council Tax.

Even a modest award of £1 per week can open the door to additional support.

Here's a rundown of the benefit, including who should give their eligibility a once-over, how to do it, potential sums you could pocket, and where to find help with filling out the form.

How to check if you're eligible for Pension Credit

Older folks, or their friends and family, can quickly check if they're eligible and get a ballpark figure of what they might receive by using the online Pension Credit calculator on GOV.UK here.

Alternatively, pensioners can give the Pension Credit helpline a call directly to make a claim on 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday.

You can find more info about claiming Pension Credit on GOV.UK here.

Other perks if you qualify for Pension Credit

If you're eligible for Pension Credit, you can also tap into other forms of help, such as:

• Help with your heating costs through the Warm Home Discount Scheme, Winter Fuel Payments or Pension Age Winter Heating Payment
• Housing Benefit if you rent the property you live in
• Council Tax discount
• Help with NHS dental treatment, glasses and transport costs for hospital appointments
• Support for Mortgage Interest if you own the property you live in
• A discount on the Royal Mail redirection service if you are moving house
• Free TV licence if you are aged 75 or over

How to lodge a claim

You can kick-start your application up to four months before you hit State Pension age. You're free to make a claim any time after reaching State Pension age, but remember, your claim can only be backdated for three months.

This means you could pocket up to three months of Pension Credit in your first payment if you were eligible during that period.

Here's what you'll need:

• your National Insurance number
• details about your income, savings and investments
• your bank account details, if you're applying via phone or post

If you're backdating your claim, you'll need details about your income, savings and investments on the date you want your claim to start.

Apply online

You can use the online service if:

• you have already claimed your State Pension
• there are no children or young people included in your claim

To check your eligibility, give the Pension Credit helpline a ring on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to work out how much you could get.