Why almost seven million older Brits will be locked out of the full State Pension rise in 2026

As new research reveals that many retirees may be excluded from the full State Pension uplift next year, we explore the reasons behind this shocking discrepancy.

Almost seven million older Brits could be set to miss out on the full State Pension increase next year, despite headlines about a bumper rise from April.

As most of our readers will know, State Pension rises are currently determined by the triple lock system.

Under these rules, the State Pension increases each year by the highest of inflation, wage growth or 2.5%.

A two-tier pension

So, why are some receiving a rougher ride than others?

The disparity in the amount retirees receive lies in the fact that the UK effectively operates a two-tier pension system.

While those who reached pension age during or after April 2016 qualify for the New State Pension, older retirees are dependent on a more complex set of rules.

Under the so-called Old State Pension, claimants receive what is known as a Basic State Pension – although they may also qualify for an additional earnings-related allowance, which is often referred to as SERPS.

This means that your eligibility effectively depends on your date of birth.

You can read more about the different types of pensions in this article.

The winners and losers

With average earnings currently running at 4.6%, those receiving the full New State Pension could receive an uplift of £551.

According to ONS data reported by the Telegraph, this would bring the total to £12,524 a year.

Meanwhile, retirees on the Old Basic State Pension would see their annual income rise to £9,634.

However, some 6.9 million also qualify for SERPS.

Unlike the Basic State Pension, SERPS only rises in line with inflation – which was 3.8% in July.

That means those pensioners may well receive a smaller boost overall, missing out on up to 20% of the increase compared with those on the New State Pension.

How the April 2026 rise could look

Source: The Telegraph

The impact in pounds and pence

Experts warn that this mismatch could easily add up to thousands of pounds over the course of a retirement.

Be aware, however, this data has yet to be confirmed as the Consumer Price Index determines any inflation rises in September.

More and more pensions trapped in poverty

Worryingly, these figures only serve to underline existing concerns about financial hardship among older people.

According to research from the Fabian Society, almost two million UK pensioners were already living in poverty at the start of 2025.

Many of those worst affected are women who spent time out of the workforce or in part-time employment due to childcare or other responsibilities.

State Pension boost worth £6,600: are you missing out?

The bigger picture

And in another blow for retirees, the future of the triple lock itself could also be in jeopardy.

The Office for Budget Responsibility estimates it could cost £200 billion by the 2070s, as rising life expectancy means more people claiming for longer.

That could mean future retirees facing later pension ages, higher National Insurance contributions, or both.

Have your say

What do you make of these figures? Were you aware that not all pensions are treated equally?

Perhaps you think that pensioners are having an especially difficult time under recent Government policy?  Or do you believe the chancellor has little choice in the current climate?

We’d love to hear your thoughts in the comments below.