State Pension Surprise: DWP Announces Payment Boost Few Even Notice

State Pension Surprise: DWP Announces Payment Boost Few Even Notice

Ravi Arora

May 16, 2025

The Department for Work and Pensions (DWP) has confirmed a small but long-standing addition to the State Pension that still benefits nearly half a million pensioners in the UK. While many retirees may not even be aware of this boost, it continues to be paid automatically to individuals aged 80 and above.

What Is the 25p Age Addition?

The 25p weekly increase, often referred to as the “age addition,” was introduced in 1971 and is granted to pensioners who reach the age of 80. This small amount adds up to just £13 a year, yet it is still included in regular State Pension payments for eligible individuals.

While it may seem like a token sum in today’s economy, this benefit has remained unchanged for over five decades, and there are no current plans by the government to increase or remove it.

Who Is Eligible?

According to the DWP, you qualify for the 25p addition if:

  • You are 80 years old or older, regardless of your gender.
  • You receive the State Pension, either the basic or new State Pension.

The payment is added automatically, so recipients don’t need to apply separately. However, many older pensioners may not realise they’re receiving it unless they carefully examine their payment breakdown.

Nearly 500,000 Pensioners Affected

As of April 2024, 474,239 people were recorded as receiving this extra 25p per week, according to a recent Freedom of Information response published by the DWP.

To notify pensioners reaching age 80, the department sent out nearly half a million letters in 2024. The cost of this exercise? Around £278,030 spent on printing and postage alone.

This means the government is spending significant taxpayer money to inform people about a benefit that offers minimal financial relief in practice.

State Pension Surprise: DWP Announces Payment Boost Few Even Notice

Broader State Pension Increases for 2025

While the 25p weekly age addition hasn’t changed in over 50 years, the broader State Pension did see a 4.1% increase in April 2025, thanks to the triple lock system.

Here’s how the main rates changed:

  • The full new State Pension rose from £221.20 to £230.25 per week.
  • The full basic State Pension went from £169.50 to £176.45 per week.

The triple lock ensures annual increases based on the highest of inflation, average wage growth, or 2.5%. This system is designed to protect pensioners’ incomes from eroding due to inflation. You can learn more on the UK Government Pension Increase details.

Underpayment Scandal: A Bigger Concern

While some pensioners are receiving small additions like the 25p boost, many others are dealing with underpaid pensions.

The DWP has acknowledged that more than 200,000 pensioners were underpaid due to various administrative errors. These include missing National Insurance credits, especially for women who claimed Child Benefit before 2000 and didn’t receive automatic updates to their State Pension records.

So far, over £450 million has been identified in underpayments, with the department continuing to review and correct affected cases.

Pension Credit: An Overlooked Lifeline

For those struggling with limited pension income, Pension Credit could offer real help. It’s a means-tested benefit that can:

  • Top up your weekly income to £218.15 (for singles) or £332.95 (for couples).
  • Offer access to additional help, like free TV licences for over-75s, council tax reductions, and support with heating costs.

On average, Pension Credit adds £4,300 a year to claimants’ income. Despite this, thousands of eligible pensioners don’t claim it.

To check if you qualify or to apply, visit the official Pension Credit page.

Final Thoughts

The DWP’s confirmation of the 25p age addition is a reminder of how outdated some pension policies have become. While broader increases like the triple lock adjustment help tackle inflation, symbolic boosts such as this 25p payment reflect the need for a more modern and effective pension support system especially as the cost of living continues to rise.

Categories DWP

Leave a Comment

Previous

DWP Shares Key Pension Credit Payment Rules for Older People Planning Holidays Abroad

Next

DWP Pension Blunder Costs Retirees £450 Million – Are You One of Them?