What does the new financial year mean for me?

These are the main changes you need to know about following the start of the new financial year (6 April), including changes to State Pension and benefit rates.

State Pension

If you’re getting a State Pension, you’ll see a 4.8% rise in the weekly rate from 6 April:

  • if you’re getting the basic State Pension, the full rate has increased from £176.45 a week to £184.90
  • if you’re getting the new State Pension, the full rate has increased from £230.25 a week to £241.30.

Not everyone receives the full amount.

Not sure which system you’re claiming under? Read our factsheet Understanding your State Pension.

If you’re getting Pension Credit, the weekly rates have also increased:

Guarantee Pension Credit for a single person£238.00
Guarantee Pension Credit for a couple£363.25
Savings Pension Credit maximum for a single person£17.96
Savings Pension Credit maximum for a couple£20.10
Severe Disability Addition£86.05
Severe Disability Addition for a couple where both qualify£172.10
Carer's Addition£48.15

State Pension age

The State Pension age is gradually increasing to 67 between 2026 and 2028. Further increases are planned after that. Find out when you’ll reach State Pension age on Gov.uk.

Disability benefits

If you’re claiming Attendance Allowance or Pension Age Disability Payment – which has replaced Attendance Allowance in Scotland – the increased weekly rates for 2026/27 are:

Higher rate£114.60
Lower rate£76.70

If you’re claiming Personal Independence Payment (or Adult Disability Payment in Scotland) – the disability benefit you can start claiming when you’re under State Pension age – the increased weekly rates for 2026/27 are:

Daily living component higher rate£114.60
Daily living component lower rate£76.70
Mobility component higher rate£80.00
Mobility component lower rate£30.30

These are also the increased rates if you’re claiming Disability Living Allowance or Scottish Adult Disability Living Allowance.

Benefits for carers

Carer’s Allowance, and Carer Support Payment in Scotland, have increased to £86.45 a week for 2026/27. The weekly earnings limit has increased to £204.

If you’re caring for someone and you're not claiming either of these benefits, read our information on carers' benefits to find out more about who qualifies.

Tax allowances

The Personal Allowance – the amount you can earn before you start paying tax – remains at £12,570 a year. This is the same in England, Scotland and Wales.

Marriage Allowance

This lets you transfer part of your Personal Allowance to your husband, wife or civil partner if you’re on a low income and they earn more than you. The amount you can transfer remains at £1,260. Read the Gov.uk page on Marriage Allowance for more information. 

Blind Person’s Tax Allowance

If you’re registered severely sight impaired (blind), you can claim Blind Person’s Tax Allowance, which adds an extra amount to your Personal Allowance. This has increased to £3,250 for 2026/27. 

National Insurance

If you're below State Pension age and in work, you will pay National Insurance contributions on earnings above £12,570 a year. This is unchanged from the previous tax year.

If you're State Pension age, you do not usually have to pay National Insurance.

You can read more about Income Tax rates and Personal Allowances on Gov.uk. The government website has more information about National Insurance.

ISA limits

If you’re paying into an ISA, the savings limit remains unchanged at £20,000 for 2026/27.

Also of interest

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Next steps

If you’re wondering whether you qualify for any of the benefits mentioned here, try our benefits calculator or contact our Helpline to arrange a free benefits check.

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