State Pension Gap: Millions Missing Out on £11,973 Yearly DWP Payments

Thousands of UK pensioners are losing out on nearly £12,000 per year due to an outdated State Pension system—are you affected?

Millions of retirees are receiving significantly less from the Department for Work and Pensions (DWP) than others, with some missing out on £11,973 per year due to the UK’s two-tier State Pension system.

Why Are Some Pensioners Getting Less?

The UK’s State Pension is divided into two schemes:

• Basic State Pension – For men born before 6 April 1951 and women born before 6 April 1953.
• New State Pension – For those born after these dates.

Key Differences in Payments (2025/26 Rates)

This means those on the basic State Pension receive £53.80 less per week, adding up to a staggering £2,797.60 less per year compared to the new scheme.

2025 State Pension Uprating Explained

The DWP increased State Pension payments by 4.1% in April 2025, in line with average earnings growth.

• New State Pension rose from £221.20 to £230.25 per week (an extra £470/year).
• Basic State Pension increased from £169.50 to £176.45 per week (an extra £360/year).

Despite this boost, 8.57 million pensioners on the basic scheme still receive far less than the 4.38 million on the new system.

Are You Missing Out?

If you’re on the basic State Pension, you could be losing:

• £53.80 per week
• £2,797.60 per year
• £11,973 over four years

What Can You Do?

• Check your eligibility for Pension Credit, which tops up low incomes.
• Review your National Insurance record to ensure you’re receiving the maximum amount.
• Consider delaying your State Pension to increase future payments.

The Bottom Line

The State Pension gap leaves millions of older Brits at a financial disadvantage. With rising living costs, understanding your pension rights could make a life-changing difference.

Were you born before 1951 (men) or 1953 (women)? You could be missing out on thousands—check your pension status today.