25p pension top-up will not increase from April

The Department for Work and Pensions (DWP) has confirmed that a specific State Pension payment will not increase from April. This payment, known as the 25p 'addition at age 80', is available to pensioners over 80 who retired before 2016. While the basic and new State Pensions will rise by 4.1% starting April 6, the 25p top-up will remain frozen. The decision is part of the government’s long-standing policy, as the payment has not changed since it was introduced in 1971. At that time, pensions were £6 per week, making the 25p a significant boost. The DWP explained that any increase in this payment would be classified as taxable income. This could affect how much support these pensioners receive from other benefits. As such, the government has chosen not to raise the amount over the years. Currently, only those who retired before 2016 are eligible for this payment. The 25p addition is not included in the new State Pension introduced later. Over the years, there have been discussions about raising this payment, but successive governments have decided against it, focusing instead on increasing the basic pension rate or providing support through other means.