If you have ever wondered why some pensioners receive more State Pension than others, the answer lies in a major change introduced on 6 April 2016.
Before that date, the UK used the Basic State Pension system. After it, the government introduced the New State Pension to simplify payments and make them fairer.
The rate you receive depends on when you reached State Pension age:
- If you reached State Pension age before 6 April 2016, you receive the old Basic State Pension.
- If you reached State Pension age on or after 6 April 2016, you receive the New State Pension.
- The New State Pension is currently worth £241.30 per week.
- The old Basic State Pension is worth £184.90 per week.
- The difference between the two is £56.40 per week.
Understanding which system applies to you is essential for planning your retirement income and checking whether you could increase your entitlement.
Why Are There Two Different State Pension Rates in the UK?
There are two State Pension rates in the UK because the government reformed the system in April 2016.
The old system had become complex, combining a basic pension with an additional earnings-related element. This made it difficult for many people to understand how much they would receive.
Under the previous arrangement, your pension depended on:
- Years of National Insurance contributions
- Eligibility for Additional State Pension (SERPS or State Second Pension)
To simplify this, the government introduced the New State Pension, a single-tier system designed to be clearer and fairer.
Former pensions minister Steve Webb explained the purpose of the change:
“The new state pension will be fairer to the low-paid, the self-employed and carers, and make it easier for people to understand what they will get from the state when they reach state pension age.”
Although the newer pension is higher, the old system has not disappeared overnight. People who had already reached State Pension age before 6 April 2016 remain on the old rules.
Which State Pension Will You Get?
The State Pension you receive depends entirely on the date you reached State Pension age. The government introduced the New State Pension on 6 April 2016, so the date you became eligible determines which system applies to you.
State Pension Rates and Eligibility (2026/27):
| State Pension Type | Who Receives It? | Full Weekly Rate 2026/27 |
| Basic State Pension | Reached State Pension age before 6 April 2016 | £184.90 |
| New State Pension | Reached State Pension age on or after 6 April 2016 | £241.30 |
In simple terms, if you retired before April 2016, you stay on the old system. If you reached pension age after that date, you fall under the new rules.
For many people approaching retirement, this distinction can be confusing because two neighbours of similar age may receive very different amounts.
What Is the Old Basic State Pension?
The old Basic State Pension applies to anyone who reached State Pension age before 6 April 2016. It is made up of two possible parts: the basic weekly pension and, in some cases, an additional amount linked to earnings.
Who qualifies for the old State Pension?
You normally need 30 qualifying years of National Insurance contributions or credits to receive the full old State Pension.
These qualifying years can come from:
- Employment and paying National Insurance
- Receiving National Insurance credits while caring for children or relatives
- Claiming certain benefits, such as Jobseeker’s Allowance or Carer’s Allowance
If you have fewer than 30 qualifying years, you can still receive part of the pension. For example, with 15 qualifying years, you would usually receive around half of the full weekly amount.
How much is the old State Pension in 2026/27?
The full Basic State Pension is £184.90 per week. However, some people receive more because they also built up an Additional State Pension through their earnings.
| Old State Pension Element | Weekly Amount |
| Basic State Pension | £184.90 |
| Possible Additional State Pension | Varies according to earnings and NI record |
A retired factory worker from Leeds explained how the old system worked for him:
“I reached pension age in 2014, so I get the old State Pension. Mine is just over £210 a week because I paid in for more than 40 years and had a small additional pension through SERPS.”
This is one reason why some people on the old system can still receive more than the headline rate of £184.90.
What Is the New State Pension?
The New State Pension was introduced on 6 April 2016 to replace the more complicated two-tier system. It gives one standard weekly amount based mainly on your National Insurance record.
Who qualifies for the new State Pension?
You qualify for the New State Pension if you reached State Pension age on or after 6 April 2016. You normally need at least 10 qualifying years on your National Insurance record to receive anything at all.
To get the full amount, you generally need 35 qualifying years.
How much is the new State Pension in 2026/27?
The full New State Pension for 2026/27 is £241.30 per week. If you have fewer than 35 qualifying years, you will receive a reduced amount based on your record.
| New State Pension Requirement | Amount |
| Minimum qualifying years to receive anything | 10 years |
| Qualifying years for the full amount | 35 years |
| Full weekly New State Pension | £241.30 |
A self-employed graphic designer from Bristol explained why she prefers the newer system:
“I reached State Pension age in 2025 and receive the new pension. Because I had 35 qualifying years, I get the full £241.30 each week. It is easier to understand than the old system ever was.”
The Department for Work and Pensions says the New State Pension was designed to make retirement planning more straightforward:
“With the new State Pension, people can know from a much younger age how much they are likely to receive, helping them plan for retirement.”
Why Is the New State Pension Higher Than the Old One?
The New State Pension is £56.40 per week higher than the old Basic State Pension. That difference exists because the old pension often worked alongside an additional earnings-related pension.
Under the previous system, someone could receive:
- The basic State Pension
- Additional State Pension through SERPS or State Second Pension
- A workplace pension
The New State Pension rolls much of that value into a higher standard amount. It was intended to be fairer for people who did not benefit much from the old additional pension, especially carers, self-employed workers and those on lower incomes.
However, comparing only the headline figures can be misleading. Some people on the old system receive more than £241.30 because they built up a large additional pension before 2016.
The government has said:
“Comparing the headline full rates alone is misleading because both systems reflect the National Insurance contributions an individual has made over their lifetime.”
How Many National Insurance Years Do You Need?
National Insurance contributions are the main factor that determines how much State Pension you receive.
For the old system, you usually need 30 years to get the full amount. Under the new system, you need:
- At least 10 qualifying years to receive any pension
- Around 35 qualifying years for the full amount
A qualifying year does not only come from employment. You may also receive National Insurance credits if you are:
- Caring for a child under 12
- Caring for a disabled relative
- Receiving Jobseeker’s Allowance or certain other benefits
- Self-employed and paying Class 2 National Insurance
If you have gaps in your record, you may be able to pay voluntary National Insurance contributions to fill them.
Why Do Some Pensioners Receive More or Less Than Others?
Not everyone receives the same State Pension, even if they are under the same system. The amount depends on your National Insurance history, your working life and whether you were contracted out.
What does ‘contracted out’ mean?
Before 2016, some people paid lower National Insurance contributions because they were members of a workplace pension scheme. This was called being “contracted out”.
Instead of paying into the Additional State Pension, some of your National Insurance contributions went into your workplace pension instead. As a result, your State Pension entitlement may be lower.
This particularly affects people who worked in public sector or final salary pension schemes.
Can you receive more than the full new State Pension?
Yes. Some people have a “protected payment” because they built up a large Additional State Pension before 2016. If their entitlement under the old rules was higher than the full New State Pension, they keep the extra amount.
That means some pensioners can receive more than £241.30 each week, even though they are technically under the new system.
How Can You Check and Increase Your State Pension?
The simplest way to find out which State Pension you are likely to receive is by using the government’s online State Pension forecast service.
This gives you a personalised breakdown based on your National Insurance record and can help you identify whether there is still time to improve your entitlement before retirement.
The forecast service shows:
- Your State Pension age
- The estimated amount you are likely to receive
- How many qualifying years you currently have
- Whether you can increase your future payments
How to check your State Pension forecast?
You can access the forecast through the GOV.UK “Check your State Pension” service. After signing in with your Government Gateway details and National Insurance number, you will be able to view your complete National Insurance history.
This is particularly useful because it highlights any missing or incomplete years. You may discover that a period of low earnings, time spent abroad or years spent out of work has left a gap in your record.
Once you know where those gaps are, you can decide whether it is worth filling them before you retire.
Ways to increase your State Pension before retirement
If your forecast is lower than expected, there are several ways to increase it:
- Pay voluntary National Insurance contributions to fill gaps in your record
- Claim National Insurance credits if you are entitled to them
- Delay taking your State Pension
Deferring your State Pension can increase your payments. Under the new system, your pension rises by around 1% for every nine weeks you delay, which works out at just under 5.8% for a full year.
Will the Old State Pension Ever Be Abolished?
The old Basic State Pension will gradually disappear over time, but it will not be abolished immediately. Since no one who reaches State Pension age after 6 April 2016 can join the old system, the number of people receiving it will naturally decline each year.
However, those who already qualified before that date will continue to receive their pension for the rest of their lives. This means the old and new systems are likely to exist side by side for several more decades.
There have been repeated campaigns calling for all older pensioners to be moved onto the higher New State Pension rate. Many people argue that it is unfair for some pensioners to receive less simply because they reached retirement age a little earlier.
Its most recent response stated:
“The government has no plans to provide all pensioners born before 6 April 1951 with the new State Pension.”
For now, both systems will continue to exist side by side for many years.
Final Thoughts on Why There Are Two State Pension Rates
There are two State Pension rates because the UK replaced the old Basic State Pension with the New State Pension in April 2016.
The previous system was more complex and included earnings-related elements, while the new system is simpler and typically pays more.
Those who reached State Pension age before 6 April 2016 receive the old pension, while others receive the new one.
Your payment depends on your National Insurance record, contracting-out history, and any additional payments. Checking your forecast helps you understand your entitlement and improve it if possible.
Frequently Asked Questions
Can you get both the old and new State Pension?
No. You receive either the old State Pension or the New State Pension depending on when you reached State Pension age.
Does the State Pension increase every year?
Yes. Both pensions usually rise each year under the triple lock, which is based on inflation, average earnings or 2.5%, whichever is highest.
What happens if you have fewer than 10 qualifying years?
If you are under the New State Pension system and have fewer than 10 qualifying years, you may not receive any State Pension.
Can self-employed people get the full New State Pension?
Yes. Self-employed people can receive the full New State Pension if they have 35 qualifying years of National Insurance contributions.
Does continuing to work affect your State Pension?
You can continue working and still receive your State Pension. However, your overall income may affect your tax position.
Can you inherit a husband or wife’s State Pension?
In some cases, yes. You may inherit part of a spouse’s Additional State Pension or protected payment.
What happens if you delay claiming your State Pension?
If you defer your State Pension, your weekly payments usually increase when you eventually claim them.
