If you are 80 or older and receiving the basic state pension, you may be eligible for a small increase in your payments. The UK government gives an extra 25p a week, or £13 a year, to those who qualify. If you’re in this age group and get the basic state pension, you should have received a letter from the Department for Work and Pensions (DWP) about this.
Let’s take a closer look at what this means and why it matters.
Who Gets the Extra 25p?
The extra 25p is only for people who are getting the basic state pension and have turned 80. So, if you were born in early 1945 or before, or you’ve turned 80 this year, you should receive this small bonus. This rule has been around since 1971.
Back in 1971, the basic state pension was just £6 a week. At that time, the 25p increase was a 4% rise in payments. Even though the cost of living has gone up a lot since then, this extra 25p hasn’t changed in more than 50 years.
Why Hasn’t It Increased?
Some people, like Labour MP Jonathan Davies, have questioned whether this bonus is worth it anymore. He asked how much it costs to send out the letters and if that cost is higher than the money being paid to pensioners.
Pensions Minister Torsten Bell responded by saying that the 25p is easy to add to people’s pensions automatically. So the admin cost is very low. However, sending out letters to let people know about the extra money did cost £278,030 in 2024, covering nearly half a million people.
Still, the total yearly cost of giving the 25p to all qualifying pensioners aged 80 and above is around £50.8 million, so the money spent on letters is just a small part of the total.
Why Was the 25p Age Addition Started?
A 2013 report from Parliament explained the reason behind this policy. It said people over 80 often need more support. The government added this small payment in 1971 to help the “very elderly” with a bit of extra money, acknowledging their special needs.
Latest Pension Increases in 2024
In April 2024, state pensions saw a 4.1% increase due to the triple lock rule, which ensures pensions rise with the highest of inflation, average wages, or 2.5%. As a result:
The basic state pension went up from £169.50 to £176.45 a week.
The full new state pension increased from £221.20 to £230.25 a week.
To get the full basic state pension, you usually need to have at least 35 years of National Insurance contributions.
If you’re unsure about how much pension you’ll get in the future, you can check using the state pension forecast tool available on the UK Government’s website.
Even though the 25p bonus might seem small, it’s a long-standing support system for elderly pensioners aged 80 and over. While it hasn’t changed since 1971, it still shows that older pensioners are being recognised for their special needs. Whether the amount should be increased or not is still up for discussion, especially with the rising cost of living. However, the bonus continues to be paid out automatically and without high costs. If you or someone you know has turned 80 and gets the basic state pension, check for the DWP letter to make sure the extra payment is being added.
FAQs
Who is eligible for the 25p state pension increase?
Anyone aged 80 or over who is receiving the basic state pension in the UK is eligible for the 25p weekly pension increase.
Do I need to apply for the 25p pension addition?
No, the payment is added automatically to your state pension once you turn 80. You will also receive a letter from the DWP confirming this.
Why is the 25p age addition still only 25p?
The 25p addition was introduced in 1971 and has never been increased. It was meant to recognise the extra needs of elderly pensioners, but has remained unchanged despite inflation.
Does this extra payment apply to those on the new state pension?
No, the 25p age addition is only for those on the basic state pension. People receiving the new state pension are not eligible.
How much does the government spend on the 25p pension increase?
In 2024/2025, the estimated annual cost of this age addition is around £50.8 million.
People that are 80 years old or older deserve better than 25p a week , what good is that to anyone , stop spending £ 4 billion a year on all these refugees. Look after OUR pensioners., OUR homeless and OUR war veterans before even thinking about any refugees 😡😡
I COULDNT AGREE MORE WITH YOUR COMMENTS IM 82 YEARS OLD WORKED ALL MY LIFE NEVER CLAIMED IN MY LIFE LIKE THESE REFRUGEES GET I CERTAINLY WOULDNT GET IT WHERE THEY COME FROM NO THE WONDER BRITAIN’S. IS LOOKED ON AS A FREE COUNTRY BUT NOT FOR US REGARDING OUR AGE WE PAY R DENTAL ETC UNLESS ON BENEFITS YET WE HAVE PAID OUR DUES BUT THIS IS GIVEN TO REFUGEES