Liberal Democrat MP Rachel Gilmour recently urged the Department for Work and Pensions (DWP) to consider “the potential merits of paying the State Pension in monthly instalments”. In a written response to the Tiverton and Minehead MP, Pensions Minister Emma Reynolds explained how the contributory benefit is usually paid every four weeks in arrears.
Ms Reynolds added: “People have the option to be paid weekly or in some circumstances bi-weekly. There are no plans to introduce alternative payment arrangements.” However, a former employee with over 42 years at the DWP shares the simple way every older person, already receiving their State Pension or due to retire this year, can change how often they are paid.
The main thing to be aware of is that the frequency can only be changed if the payments have already been set up to be made into a bank account.
People already on the New or Basic State Pension
Ex-DWP employee Sandra Wrench told the Daily Record: “If you have already made a claim for State Pension and are in receipt of four-weekly payments, and you want weekly payments, then phone the DWP change of circumstances (Pension Service) telephone number on 0800 731 0469, and request weekly payments.
“Alternatively write to The Pension Service, Post Handling Site A, Wolverhampton WV98 1AF, with your name address and National Insurance number and ask to be changed to weekly payment for your State Pension.”
People about to claim the New State Pension
Mrs Wrench explained: “If you are yet to claim your State Pension, put in the information box on the State Pension claim form ‘Please pay my pension weekly’.”
The DWP insider also said the four-weekly pay frequency may make it difficult to budget for household bills as it’s not paid monthly, especially if someone has been used to being paid their salary at the end of each month.
She said: “From your ‘budget point of view’ it may be easier to be paid weekly then you know exactly how much State Pension has been paid into your account each month.
“For some members of the public who are used to being paid their wages weekly, claiming a State Pension which is paid every four weeks, can cause problems financially and make it difficult for them to budget.”
The ex-DWP employee isn’t alone in raising awareness about the payment options. Back in 2021, BBC Radio 4 Money Box presenter and financial journalist Paul Lewis, highlighted the weekly payment option in the Radio Times. He explained: “Three quarters of all pensioners are paid four weeks in arrears, but a State Pension can also be paid weekly.
“The Government hides this option when people apply, as the application form simply says ‘State Pension is usually paid every four weeks’.”
State Pension payment rates 2025/26
The DWP has published the full list of State Pension and benefit uprated payments on GOV.UK here, which also includes additional elements such as the deferred rates, which are rising by 1.7 per cent (September Consumer Price Index inflation rate).
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)
Future State Pension increases
The Labour Government has pledged to honour the Triple Lock or the duration of its term and the latest predictions show the following projected annual increases:
- 2025/26 – 4.1% confirmed, the forecast was 4%
- 2026/27 – 2.5%
- 2027/28 – 2.5%
- 2028/29 – 2.5%
- 2029/30 – 2.5%
Recent analysis released by Royal London revealed only around half of people receiving the New State Pension last year were getting the full weekly amount – and around 150,000 were on less than £100 per week.
The DWP will issue letters to all 12.9 million State Pensioners in March telling them their new payment rates. This letter also encourages older people to check if they are eligible for Pension Credit.