Every April, pensioners in the UK get a pay rise thanks to the triple lock system. But did you know that some older pensioners also receive an extra 25p per week? It might sound tiny, but it adds up to £13 a year and is meant as a little top-up for those aged 80 and above. While this bonus has been around for decades, there are growing calls to increase the amount to better match today’s living costs.
Let’s break down who gets this 25p, why it hasn’t increased in over 50 years, and what experts think should happen next.
Who Gets the 25p Weekly Pension Top-Up?
This extra payment is for people on the basic state pension who have reached the age of 80. So, if you were born in 1944 or earlier, or turned 80 this year, you should qualify. The Department for Work and Pensions (DWP) usually sends a letter when it’s time to start giving you this bonus.
However, if you’re on the new state pension (which started for people reaching pension age after April 2016), you won’t get this bonus. The 25p top-up only applies to the older, basic state pension system.
Why Is It Only 25p a Week?
This policy started way back in 1971, when the weekly state pension was just £6. At that time, 25p was a meaningful amount — about a 4% boost. It was introduced because older pensioners, especially those in their 80s and beyond, were seen to need extra support.
Even though the cost of living has increased a lot since then, this 25p amount has never been updated. That’s why many feel it’s now outdated and should be changed to reflect current expenses.
Government’s Stand on the 25p Bonus
When asked about increasing this small top-up, a government spokesperson said they are committed to helping pensioners, highlighting how the triple lock system protects pensions from losing value. They also pointed to increases in the national living wage, benefits, and extra support for low-income households.
But when it comes to the 25p bonus specifically, the DWP said it has no current plans to increase it. The annual cost of providing this small payment to eligible people is around £50.8 million for 2024/2025.
What Experts Say: Time for an Increase?
Some financial experts strongly believe this 25p should be updated. Tom Blake, founder of Money Saving Guru, said that if the amount had risen with inflation, it would now be worth £3.20 a week, or £166 per year.
He explained that people in their 80s and 90s often deal with higher expenses — from medical care to heating costs — just to live comfortably. These aren’t luxury costs; they’re basic needs.
Tom suggests a tiered bonus system based on age. For example, an increase could start at age 80 and rise further at ages 85 or 90. Even a small rise to £3 or £5 a week would make a big difference for these pensioners and would be more cost-effective than raising everyone’s pension.
State Pension Amounts After April Increase
Thanks to the triple lock, state pensions increased by 4.1% in April. Here’s how they stand now:
- Basic State Pension: £176.45 per week
- New State Pension: £230.25 per week
To get the full basic state pension, you usually need 30 years of National Insurance contributions. For the full new state pension, you need 35 years.
The 25p pension top-up is a small but symbolic benefit for people aged 80 and above. While it may have meant a lot in the 1970s, it hasn’t kept up with modern living costs. Many feel it’s time for the government to review and possibly increase this amount to provide better support for our oldest pensioners.
With rising expenses and people living longer, an updated, age-linked bonus could be a smart and fair solution. For now, though, the 25p remains unchanged – a tiny sum that still carries a big message about how we care for our elders.
FAQs
What is the 25p state pension bonus?
It is a weekly extra payment given to people aged 80 or above who receive the basic state pension. This adds up to £13 per year.
Who is eligible for the 25p pension bonus?
You are eligible if you are 80 or older and receiving the basic state pension. This does not apply to those on the new state pension.
Why hasn’t the 25p pension bonus increased over time?
The 25p amount was introduced in 1971 and has remained unchanged. The government currently has no plans to increase it.
Do people on the new state pension get the 25p bonus?
No, the 25p top-up only applies to those receiving the basic state pension. It is not included in the new state pension system.
Is there a chance the 25p pension bonus will be increased in the future?
While experts have recommended an increase, the government has said there are no current plans to raise the amount.