DWP Warning – £470 State Pension Increase Could Miss Thousands and Check If You’re Eligible

In June 2025, the UK government will raise the State Pension by 4.1%, offering an annual boost of up to £470 for eligible pensioners. This increase, driven by the triple lock policy, is welcome news for millions across the country. But not everyone will get the full benefit. Some may be excluded due to gaps in their National Insurance (NI) record, their country of residence, or simply not claiming what they’re entitled to.

If you’re approaching retirement or already receiving a pension, it’s crucial to know what this increase means, how it applies to you, and what steps you can take to avoid missing out.

Triple

The triple lock policy has been in place since 2010. It guarantees that the State Pension rises every year by the highest of:

• The Consumer Price Index (CPI) inflation rate
• Average UK earnings growth
• A flat minimum of 2.5%

For 2025, CPI came out highest at 4.1%, so that’s the rate being applied from June onwards.

Amount

Here’s how much your pension could increase based on which system you’re on:

This increase only applies in full if you have a complete National Insurance record. Those with fewer qualifying years will receive a reduced amount.

Eligibility

Contrary to what many believe, just turning pension age doesn’t guarantee the full amount. Here’s what really matters:

1. National Insurance Record

You need:

• At least 10 qualifying years to get any State Pension
• 35 qualifying years to receive the full new amount

Years count if you:

• Worked and paid NI contributions
• Claimed benefits like Jobseeker’s Allowance or Employment Support Allowance
• Received Child Benefit (for children under 12)
• Were a carer and received NI credits

Example:
Jane spent 15 years working and 5 years as a full-time parent receiving Child Benefit. That gives her 20 qualifying years. She’ll get a partial pension based on that.

2. Living Abroad

If you live outside the UK, your pension may not increase annually unless you live in a country with a reciprocal agreement.

Countries without increases include:

• Australia
• Canada
• New Zealand

If you’re living in one of these countries, your pension amount will be frozen at the level it was when you moved.

Check the list here: Claiming State Pension abroad

3. Pension Credit

If your State Pension is below the minimum income threshold, you may qualify for Pension Credit—a benefit that tops up your income and opens access to:

• Cold Weather Payments
• Free NHS dental care
• Council Tax reductions
• Free TV licence (if over 75)

Yet more than 800,000 eligible pensioners aren’t claiming it.

Steps

Don’t leave money on the table. Here’s how to protect and increase your pension:

Step 1

Visit GOV.UK and review your record. Look for gaps and consider paying Class 3 voluntary contributions (costing about £907 per year in 2025) to fill them.

Step 2

This tool shows how much you’re on track to receive and what you can do to improve it. It’s quick, free, and secure through your Government Gateway account.

Step 3

If your income is low, apply even if you have savings. You could get over £3,000 more a year plus extra benefits.

Apply by phone: 0800 99 1234
Or online: gov.uk/pension-credit

Step 4

If you’ve moved abroad or are planning to, research whether your country has a pension agreement with the UK to avoid frozen payments.

Step 5

Pension rules can be confusing. Services like Pension Wise (via MoneyHelper) or Citizens Advice offer free, tailored guidance to help you navigate your options.

The June 2025 increase is an opportunity to boost your retirement income—but only if you meet the requirements. Taking time to check your record, know your entitlements, and act on gaps can make a big difference. Don’t wait until retirement to get it right—plan now and secure what you’ve worked for.

FAQs